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2004 SESSION

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SB 74 Tobacco prod.; tax increased, revenue deposited in Health Care Fund & Local Govt. School Const. Fd.

Introduced by: Janet D. Howell | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

State and local cigarette taxes. Increases the state cigarette tax from 2.5 cents per pack to 65 cents per pack (based on 20 cigarettes in a pack).

An amount equivalent to 40 cents per pack shall be deposited in a special fund titled "Local Government School Construction Fund." All such moneys deposited shall be distributed quarterly to counties and cities within 30 days after the end of each calendar quarter. Moneys in the Fund shall be distributed on a set per pupil amount, based on the latest actual adjusted average daily membership as determined by the Department of Education. All moneys distributed shall be used solely for public school construction, public school additions and renovations, including retrofitting and enlarging public school buildings; public school infrastructure, including technology infrastructure; site acquisition for public school buildings and public school facilities; or debt service payments on such projects completed subsequent to December 31, 1993.

An amount equivalent to 25 cents per pack shall be deposited in a special fund titled "Virginia Health Care Fund." All such moneys deposited shall be used solely for the provision of health care services.

The bill also authorizes all counties, cities, and towns to impose local cigarette taxes. The maximum local cigarette tax that may be imposed (i) between July 1, 2004, and July 1, 2005, is 20 cents per pack; (ii) between July 1, 2005, and July 1, 2006, is 35 cents per pack; and (iii) on or after July 1, 2006, is 50 cents per pack. Any county, city, or town imposing a local cigarette tax at a rate higher than these rates prior to December 1, 2003, may continue to impose the tax at such higher rate but no higher.


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