Cigarette tax.

09LSO-0406.L2

FISCAL NOTE

	FY 2010	FY 2011	FY 2012
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase:
LOCAL SOURCES FUND	21,198,000	21,198,000	21,198,000

Source of revenue increase:

Increase in the cigarette tax from $.60 per pack to $1.10 per pack

Assumptions:

The above estimates are based on the total cigarette taxes collected in FY 2008.

The revenue received from the proposed increase shall be distributed to incorporated cities and towns and to boards of county commissioners in the proportion the cigarette taxes derived from sales within each incorporated city or town or county bears to total cigarette taxes collected.

The above estimates assume that the volume of cigarettes sold will remain at FY 2008 levels. It is possible that this tax increase may reduce the number of packs sold, which would reduce the revenue increase estimated above. However, there is know way to know if this tax increase will lower smoking rates enough to significantly impact cigarette sales and cigarette tax revenues.

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

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