Report Title:

Tobacco Tax; Crystal Methamphetamine Prevention and Treatment

Description:

Allocates the one-half-cent increase in the tobacco tax that takes effect on July 1, 2004, and an additional one-half-cent increase in the tobacco tax, to prevention and treatment programs and services for crystal methamphetamine. (SD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

2844

TWENTY-SECOND LEGISLATURE, 2004

H.D. 1

STATE OF HAWAII

S.D. 1


 

A BILL FOR AN ACT

 

relating to crystal methamphetamine.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 245-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Every wholesaler or dealer, in addition to any other taxes provided by law, shall pay for the privilege of conducting business and other activities in the State:

(1) An excise tax equal to 5.00 cents for each cigarette sold, used, or, possessed by a wholesaler or dealer after June 30, 1998, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer;

(2) An excise tax equal to 6.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer after September 30, 2002, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer;

(3) An excise tax equal to 6.50 cents for each cigarette sold, used, or possessed by a wholesaler or dealer after June 30, 2003, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer;

(4) An excise tax equal to [7.00] 7.50 cents for each cigarette sold, used, or possessed by a wholesaler or dealer after June 30, 2004, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer; and

(5) An excise tax equal to forty per cent of the wholesale price of each article or item of tobacco products sold by the wholesaler or dealer, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer.

Where the tax imposed has been paid on cigarettes or tobacco products that thereafter become the subject of a casualty loss deduction allowable under chapter 235, the tax paid shall be refunded or credited to the account of the wholesaler or dealer. The tax shall be applied to cigarettes through the use of stamps."

SECTION 2. Chapter 321, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§321-   Crystal methamphetamine treatment and prevention special fund. There is established a special fund to be known as the crystal methamphetamine treatment and prevention special fund, into which shall be deposited one cent of the excise tax collected on each cigarette sold, used, or possessed by a wholesaler or dealer pursuant to section 245-3(a)(4). The special fund shall be administered by the department and used to fund programs and services for the treatment and prevention of crystal methamphetamine use."

SECTION 3. Section 245-15, Hawaii Revised Statutes, is amended to read as follows:

"§245-15 Disposition of revenues. (a) [All] Except as provided in subsection (b), all moneys collected pursuant to this chapter shall be paid into the state treasury as state realizations to be kept and accounted for as provided by law.

(b) One cent of the excise tax collected on each cigarette sold, used, or possessed by a wholesaler or dealer pursuant to section 245-3(a)(4), shall be deposited into the crystal methamphetamine treatment and prevention special fund."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2004.