The bill proposes to repeal the existing section 149.015 of Missouri law regarding cigarette taxes and replace it with a new section that introduces significant changes to the tax structure. The current tax on cigarette sales is set at eight and one-half mills per cigarette, which will decrease to six and one-half mills once the General Assembly appropriates a specific amount to the health initiatives fund. The new section also establishes an additional tax of sixty-six and one-half mills per cigarette, effective January 1, 2027. This additional tax revenue, after accounting for a three percent reduction, will be deposited into the state general revenue fund. Furthermore, the bill includes provisions for the management and sale of tax stamps, requiring that all cigarettes sold in Missouri must be stamped, and outlines the responsibilities of the director in overseeing the stamp procurement process. It also stipulates that the additional tax will only apply to stamps purchased after the effective date of the new tax, with restrictions on the quantity of stamps that can be purchased in the six months leading up to the tax modification. Importantly, the bill will be submitted to voters for approval in a referendum scheduled for November 2026, and it will only take effect if a majority of voters approve it.

Statutes affected:
Introduced (5917H.01): 149.015