AB 381

Under current law, the state imposes an excise tax on the sale of cigarettes. The

person who pays the tax affixes tax stamps to the cigarette package to indicate that

the tax has been paid. All persons who are authorized to purchase tax stamps receive

a discount on the tax owed equal to 0.7 percent of the tax.

Under the bill, all persons who are authorized to purchase tax stamps receive

a discount on the tax owed equal to 0.5 percent of the tax. In addition, the

Department of Revenue credits an amount equal to 0.2 percent of the amount paid

on the purchase of tax stamps to the appropriation for tobacco control grants and

programs.