04/24/1997 08:10 AM House FIN

  SENATE BILL 13                                                               
                                                                               
       "An Act  relating to  taxes on  cigarettes and  tobacco                 
       products,  and to  the  use of  the  proceeds of  those                 
       taxes; and providing for an effective date."                            
                                                                               
  SENATOR BERT SHARP noted that SB 13 was an education bill, a                 
  health bill and  a revenue  bill.  He  provided a  sectional                 
  analysis of the bill.                                                        
                                                                               
  Senator  Sharp  stated  that  Section  #1 would  detail  the                 
  legislative intent and purpose of the bill.  This section of                 
  the  bill directs  the  cigarette tax  be  deposited to  the                 
  existing  "dedicated  school  fund"  and  only be  used  for                 
  rehabilitation,  construction  and  repair  of  the  State's                 
  school facilities.                                                           
                                                                               
  Section  #2,  #3  and #4  would  increase  the  tax on  each                 
  cigarette  by seventy-one cents per pack.   Section #5 would                 
  increase  the excise  tax on  tobacco  products from  25% of                 
  wholesale value to 75% of wholesale value.  Section #6 would                 
  amend  the  statutes to  change  the percentage  the license                 
  deducts to  cover accounting  and filing  expenses from  one                 
  percent to four-tenths of one percent.   Sections #7, #9 and                 
  depending on any possible court decisions.  Section #8 would                 
  allow for a retroactive fall-back  clause to accommodate any                 
  court ordered changes.                                                       
                                                                               
  Representative  J. Davies MOVED to  report HCS CSSB 13 (HES)                 
  out of  Committee with  individual recommendations  and with                 
  the  accompanying  fiscal   note.    Representative  Kohring                 
  OBJECTED.                                                                    
                                                                               
  A roll call vote was taken on the MOTION.                                    
                                                                               
       IN FAVOR:      J.   Davies,   G.   Davis,  Grussendorf,                 
                      Martin, Hanley, Therriault                               
       OPPOSED:       Mulder, Foster, Kelly, Kohring, Moses                    
                                                                               
  The MOTION PASSED (6-5).                                                     
                                                                               
  HCS  CSSB 13  (HES)  was  reported  out  of  Committee  with                 
  individual recommendations  and with  a fiscal  note by  the                 
  Department of Revenue dated 4/07/97.                                         
                                                                               
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