Budget Amendment ID: FY2012-S3-33

OTH 33

Closing Tobacco Loopholes

Ms. Chang-Diaz, Mr. Montigny, Ms. Fargo and Ms. Creem moved that the proposed new text be amended by inserting, after Section ____, the following new Sections:-

“SECTION ____. Section 7B of Chapter 64C of the General Laws is hereby amended by adding the following paragraph:- '(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 and not more than 12 pounds per 1,000 units held in the commonwealth at the rate of 80 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 90 per cent of the wholesale price of such product.'"

“SECTION _____. Section 7C(a) of Chapter 64C of the General Laws is hereby amended by striking out the sentence 'Notwithstanding the provisions of this section, the excise imposed by this section shall equal twenty-five percent of the price paid by such licensee or unclassified acquirer to purchase smokeless tobacco so sold, imported, or acquired' and inserting in place thereof the following sentence:- 'Notwithstanding the provisions of this section, the excise imposed by this section shall equal forty-five percent of the price paid by such licensee or unclassified acquirer to purchase smokeless tobacco so sold, imported or acquired.'”