Relating to cigarettes, tobacco products, alternative nicotine products, and vapor products, including taxation of such products

The bill increases the tax on tobacco products from percent of the wholesale sales price to percent of the wholesale sales price, and imposes this same tax on alternative nicotine products and vapor products. The bill eliminates the cap on the tax for cigars which was cents per cigar. The bill makes conforming provisions throughout the Code to make administration and collection of the tax on alternative nicotine products and vapor products the same as for tobacco products. The bill provides that of the funds consisting of the revenues generated from the tax on cigarettes, tobacco products, alternative tobacco products, and vapor products, the first $9 million credited to the health care trust fund, annually, is to be used for the purposes of tobacco use prevention, cessation, and control in accordance with the centers for disease control and prevention of the United States department of health and human services’ most recently published best practices for comprehensive tobacco control programs, and the remaining revenue credited, annually, to the fund shall be used first for mental health services followed by other specified purposes of the fund. The bill provides that under the director of revenue’s authorization to require permit holders to make additional reports, the director shall specifically prescribe the forms necessary and require each retailer to provide on the forms prescribed, full and complete information pertaining to any cigarettes, alternative nicotine products, or vapor products offered for sale or sold by the retailer, including the type and brand of the product.