Tobacco tax.

06LSO-0222.L2

                                                         

FISCAL NOTE

 

 

FY 2007

FY 2008

FY 2009

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Revenue Increase (Decrease):

 

 

 

EARMARKED REVENUE

2,405,000

2,405,000

2,405,000

GENERAL FUND

(24,000)

(24,000)

(24,000)

 

Source of revenue increase:

 

Increase in excise tax rate on wholesale purchase of tobacco products (from 20% to 40%); Increase in excise tax rate on retail price of tobacco products (from 10% to 20%).

 

Source of revenue decrease:

 

Decrease in consumption of other tobacco products.

 

 

Assumptions:

 

Revenue increase from the proposed excise tax rate increase on other tobacco products is based on the average tax collected on other tobacco products in FY 2004 and FY 2005.

 

The revenues from the proposed excise tax rate increase shall be distributed to and continuously appropriated to the following:

 

1)     The Department of Health for dental health care provided under the Wyoming Medical Assistance and Services Program created by title 42, chapter 4 of the Wyoming statutes.

2)     The dental health programs administered by the community and family health division of the Department of Health.

 

A one percent reduction in other tobacco product consumption is assumed, based on the actual reduction in cigarette consumption experienced by the state from the recent $.48/pack cigarette tax increase that went into effect July 1, 2003.

 

 

Prepared by:   Dean Temte, LSO    Phone:   777-7881

(Information provided by Dan Noble, Dept. of Revenue; phone 777-5220)