HOUSE BILL NO. 1591 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE WRIGHT.
3099H.02I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal section 149.015, RSMo, and to enact in lieu thereof one new section relating to cigarette taxes, with a referendum clause.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 149.015, RSMo, is repealed and one new section enacted in lieu 2 thereof, to be known as section 149.015, to read as follows: 149.015. 1. Except as provided in subsection 9 of this section, a tax shall be levied 2 upon the sale of cigarettes at an amount equal to eight and one-half mills per cigarette, until 3 such time as the general assembly appropriates an amount equal to twenty-five percent of the 4 net federal reimbursement allowance to the health initiatives fund, then the tax shall be six 5 and one-half mills per cigarette beginning July first of the fiscal year immediately after such 6 appropriation. As used in this section, "net federal reimbursement allowance" shall mean that 7 amount of the federal reimbursement allowance in excess of the amount of state matching 8 funds necessary for the state to make payments required by subsection 1 of section 208.471 9 or, if the payments exceed the amount so required, the actual payments made for the purposes 10 specified in subsection 1 of section 208.471. 11 2. The tax shall be evidenced by stamps which shall be furnished by and purchased 12 from the director or by an impression of the tax by the use of a metering machine when 13 authorized by the director as provided in this chapter, and the stamps or impression shall be 14 securely affixed to one end of each package in which cigarettes are contained. All cigarettes 15 must be stamped before being sold in this state. 16 3. Cigarette tax stamps shall be purchased only from the director. All stamps shall be 17 purchased by the director in proper denominations, shall contain such appropriate wording as
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 1591 2
18 the director may prescribe, and shall be of such design, character, color combinations, color 19 changes, sizes and material as the director may, by rules and regulations, determine to afford 20 the greatest security to the state. It shall be the duty of the director to manufacture or contract 21 for revenue stamps required by this chapter; provided that if the stamps are contracted for, the 22 manufacturer thereof shall be within the jurisdiction of the criminal and civil courts of this 23 state, unless the stamps cannot be obtained in this state at a fair price or of acceptable quality. 24 If stamps are manufactured outside of the state, the director shall take any precautions which 25 he deems necessary to safeguard the state against forgery and misdelivery of any stamps. The 26 director may require of the manufacturer from whom stamps are purchased a bond in an 27 amount to be determined by him commensurate with the monetary value of the stamps, 28 containing such conditions as he may deem necessary in order to protect the state against loss. 29 4. It shall be the intent of this chapter that the impact of the tax levied hereunder be 30 absorbed by the consumer or user and when the tax is paid by any other person, the payment 31 shall be considered as an advance payment and shall thereafter be added to the price of the 32 cigarettes and recovered from the ultimate consumer or user with the person first selling the 33 cigarettes acting as an agent of the state for the payment and collection of the tax to the state, 34 except that in furtherance of the intent of this chapter no refund of any tax collected and 35 remitted by a retailer upon gross receipts from a sale of cigarettes subject to tax pursuant to 36 this chapter shall be claimed pursuant to chapter 144 for any amount illegally or erroneously 37 overcharged or overcollected as a result of imposition of sales tax by the retailer upon 38 amounts representing the tax imposed pursuant to this chapter and any such tax shall either be 39 refunded to the person who paid such tax or paid to the director. The director may recoup 40 from any retailer any tax illegally or erroneously overcharged or overcollected unless such tax 41 has been refunded to the person who paid such tax. 42 5. In making sales of cigarettes in the state, a wholesaler shall keep a record of the 43 amount of tax on his gross sales. The tax shall be evidenced by appropriate stamps attached 44 to each package of cigarettes sold. Notwithstanding any other law to the contrary, no tax 45 stamp need be attached to a package of cigarettes transported in the state between wholesalers 46 or distributors unless and until such package is sold to a retailer or consumer. 47 6. The tax on any cigarettes contained in packages of four, ten, twenty or similar 48 quantities to be used solely for distribution as samples shall be computed on a per cigarette 49 basis at the rate set forth in this section, and payment of the tax shall be remitted to the 50 director at such time and in such manner as he may prescribe. 51 7. The revenue generated by the additional two mills tax imposed effective August 52 13, 1982, less any three percent reduction allowed pursuant to the provisions of section 53 149.021, shall be placed in a separate fund entitled "The Fair Share Fund". Such moneys in HB 1591 3
54 the fair share fund shall be transferred monthly to the state school moneys fund and 55 distributed to the school districts in this state as provided in section 163.031. 56 8. The revenue generated by the additional two mills tax imposed effective October 1, 57 1993, less any three percent reduction allowed pursuant to the provisions of section 149.021, 58 shall be deposited in the health initiatives fund created in section 191.831. When the general 59 assembly appropriates an amount equal to twenty-five percent of the net federal 60 reimbursement allowance to the health initiatives fund, this subsection shall expire. The 61 additional two mills tax levied pursuant to this section shall not apply to an amount of 62 stamped cigarettes in the possession of licensed wholesalers on October 1, 1993, up to thirty- 63 five percent of the total cigarette sales made by such licensed wholesaler during the six 64 months immediately preceding October 1, 1993. 65 9. (1) Beginning January 1, 2027, in addition to the tax levied on the sale of 66 cigarettes in subsection 1 of this section, a tax shall be levied upon the sale of cigarettes 67 at an amount equal to the lowest amount of tax levied on the sale of cigarettes by any 68 other state or ten mills per cigarette, whichever is lower. 69 (2) The department of revenue shall monitor the rates of tax imposed on 70 cigarettes by the other states as provided under subdivision (1) of this subsection and 71 annually publish the cigarette tax rate not later than October first of each year. 72 Modifications to the cigarette tax shall take effect on January first of each calendar year 73 and shall apply to stamps purchased on or after the effective date of the rate change. 74 The department of revenue shall adjust and update the tax rate to effectuate the 75 provisions of this subsection. 76 (3) The additional tax imposed under this subsection shall apply only to stamps 77 purchased on or after the effective date of a rate change as provided under this 78 subsection. For a period up to six months prior to the effective date of a tax 79 modification under this subsection, licensees shall not be allowed to purchase stamps in 80 a number greater than one hundred ten percent of the number that were purchased by 81 such licensee during the same period in the preceding year. 82 (4) The revenue generated by the additional tax imposed under this subsection, 83 less any three percent reduction allowed under the provisions of section 149.021, shall be 84 deposited in the health initiatives fund created under section 191.831. Section B. Section A of this act is hereby submitted to the qualified voters of this state 2 for approval or rejection at an election which is hereby ordered and which shall be held and 3 conducted on Tuesday next following the first Monday in November, 2026, under the 4 applicable laws and constitutional provisions of this state for the submission of referendum HB 1591 4
5 measures by the general assembly, and this act shall become effective when approved by a 6 majority of the votes cast thereon at such election and not otherwise. ✔
Statutes affected: