SENATE DOCKET, NO. 764        FILED ON: 1/17/2013

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1312

The Commonwealth of Massachusetts

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PRESENTED BY:

Harriette L. Chandler

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act to reduce tobacco addiction.

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PETITION OF:

SENATE DOCKET, NO. 764        FILED ON: 1/17/2013

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1312

The Commonwealth of Massachusetts

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In the Year Two Thousand Thirteen

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An Act to reduce tobacco addiction.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Section 7B of Chapter 64C of the General Laws is hereby amended by adding the following paragraphs:

(m) In addition to the excise imposed by paragraph (b), an excise shall be imposed on all cigars weighing more than 3 pounds per 1,000 units held in the commonwealth at the rate of 105 per cent of the wholesale price of such product. In addition to the excise imposed by paragraph (b), an excise shall be imposed on all smoking tobacco held in the commonwealth at the rate of 105 per cent of the wholesale price of such product.

(n) Notwithstanding the provisions of section 28 and the provisions of this section, a portion of the cigar and smoking tobacco excise revenue paid under this section shall be credited to the Prevention and Wellness Trust Fund, established pursuant to section 2G of chapter 111. The amount credited to the Prevention and Wellness Trust Fund shall be all sums received pursuant paragraph (m) of section 7B of chapter 64C, together with any penalties, forfeitures, interest, costs of suits and fines collected in connection therewith, less all amounts refunded or abated in connection therewith.

SECTION 2. Section 7C of Chapter 64C of the General Laws is hereby amended by adding the following paragraph:

(d) In addition to the excise imposed by section (a) of chapter 64C , an excise shall be imposed equal to forty-five percent of the price paid by such licensee or unclassified acquirer to purchase smokeless tobacco so sold, imported or acquired. Notwithstanding the provisions of section 28 and the provisions of this section, a portion of the smokeless tobacco excise revenue paid under this section shall be credited to the Prevention and Wellness Trust Fund, established pursuant to section 2G of chapter 111.  The amount credited to the Prevention and Wellness Trust Fund shall be all sums received pursuant paragraph (d) of section 7C of chapter 64C, together with any penalties, forfeitures, interest, costs of suits and fines collected in connection therewith, less all amounts refunded or abated in connection therewith.

SECTION 3. Section 6 of chapter 64C of the General Laws, as so appearing, is hereby amended by striking out, in lines 3 and 11, the figure 100½ and inserting in place thereof the following figure:- 163

SECTION 4. Said Section 6 of Chapter 64C as so appearing, is further amended by adding the following paragraph:-

Notwithstanding the provisions of section 28, and the provisions of this section, a portion of cigarette excise revenues paid under this section shall be credited to the Massachusetts Tobacco Cessation and Prevention program within the Department of Public Health. The amount credited to the fund in fiscal year 2014 shall be twenty per cent of the monthly excess, if any, on cigarette excise payments received in August 2013 to June 2014 over the cigarette excise payments received in the same months in the previous fiscal year. The amount credited to the Fund in fiscal year 2015 shall be twenty per cent of the monthly excess in cigarette excise payments received in fiscal year 2015 over cigarette excise payments received in the same months in fiscal year 2012. The amount credited to the fund in fiscal year 2016 and thereafter shall be twenty per cent of the monthly cigarette revenue received in each such year multiplied by the percentage of cigarette excise collections in 2015 that were credited to the fund.

SECTION 5. Section 28 of said chapter 64C of the General Laws, as so appearing, is hereby amended by striking out the words sections 6 and 7A and inserting in place thereof the following words:- sections 6, 7A, 7B and 7C

SECTION 6. Section 7C, Chapter 64C of the General Laws is hereby amended by adding the following:

(e) Any change, henceforth, to the state excise tax rate for cigarettes shall cause a commensurate adjustment in the state excise tax for all other tobacco products under Chapter 64C.  For purposes of this subsection (e), the term “commensurate adjustment” shall be determined by dividing the change in the state cigarette excise tax by the total cigarette excise tax prior to that change, and the resulting percentage change shall be applied to calculate the commensurate adjustment to the state excise taxes for cigars, smokeless tobacco and smoking tobacco. There shall be no negative commensurate adjustments, and the said rate for each tobacco product each shall be adjusted independently of the other such product categories under Chapter 64C.  The change in cigarette excise tax and commensurate adjustments shall have the same effective date.    

SECTION 7. Every manufacturer, wholesaler, vending machine operator, unclassified acquirer or retailer, as defined in section 1 of chapter 64C of the General Laws, and every stamper appointed by the commissioner of revenue pursuant to section 30 of said chapter 64C, who, as of the commencement of business on July 1, 2013, has on hand any cigarettes for sale or any unused adhesive or meter stamps, shall make and file with the commissioner within 20 days a return, subscribed and sworn to under the penalties of perjury, showing a complete inventory of such cigarettes and stamps and shall, at the time he is required to file such return, pay an additional excise of 62½ mills per cigarette on all cigarettes and all unused adhesive and meter stamps upon which an excise of only 100½ mills has previously been paid. All provisions of chapters 62C and 64C of the General Laws relative to the assessment, collection, payment, abatement, verification and administration of taxes, including penalties, shall apply to the excise imposed by this section.

SECTION 8. This act shall take effect on July 1, 2013