STAND. COM. REP. NO.475-02
Honolulu, Hawaii
, 2002
RE: H.B. No. 2741
H.D. 2
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Sir:
Your Committee on Finance, to which was referred H.B. No. 2741, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE CIGARETTE AND TOBACCO TAX,"
begs leave to report as follows:
The purpose of this bill is to discourage smoking and enhance tobacco prevention and regulation efforts by:
(1) Increasing the tax paid by wholesalers and dealers on cigarettes and tobacco products;
(2) Allocating $5,000,000 annually to the Hawaii Tobacco Prevention and Control Trust Fund from the excise tax revenues collected from tobacco products; and
(3) Allocating an unspecified amount annually to the Department of Health to start up and maintain proposed tobacco regulation.
The American Lung Association, American Cancer Society, American Heart Association, and Coalition for a Tobacco Free Hawaii testified in support of this measure. Brown and Williamson Tobacco Corporation testified in opposition to this measure. The Department of Taxation and Tax Foundation of Hawaii commented on this bill.
Your Committee has amended this measure by:
(1) Changing the increase in excise tax paid by wholesalers and dealers on cigarettes to six cents;
(2) Changing the increase in the tax paid by wholesalers and dealers on tobacco products back to the original amount of 40 per cent of the wholesale price of each article or item of tobacco product sold;
(3) Deleting provisions for the allocation of funds generated by the tax increase to the Hawaii Tobacco Prevention and Control Trust Fund and the Department of Health;
(4) Amending language in Act 249, Session Laws of Hawaii 2000, to make these provisions permanent; and
(5) Making technical, nonsubstantive amendments for purposes of clarity, conformity, and style.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2741, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2741, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ DWIGHT Y. TAKAMINE, Chair |
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