Cigarette wholesalers.

08LSO-0170.L1

FISCAL NOTE

	FY 2009	FY 2010	FY 2011
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase:
GENERAL FUND	1,023,516	1,023,516	1,023,516
LOCAL SOURCES FUND	179,206	179,206	179,206

Source of revenue increase:

Reduction of wholesaler discount percentage from 6.0% to 1.2%

Assumptions:

The Department of Revenue utilized the FY 2007 cigarette tax distribution numbers to calculate the change in allocation of tax from the wholesaler to the General Fund and local governments. It is assumed that this revenue increase will remain constant, as cigarette taxes have been relatively stable over the last few years.

The current cigarette tax distribution results in 85.1% of cigarette taxes being distributed to the General Fund and 14.9% being distributed to local governments. 

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

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