COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 3040-01
BILL NO.: SB 720
SUBJECT: Tobacco Products; Merchandising Practices; Crimes and Punishment; Federal-State Relations; Taxation-Sales and Use
TYPE: Original
DATE: January 24, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials of the Department of Public Safety, Office of State Courts Administrator, Department of Corrections, Office of the State Public Defender, Office of Prosecution Services and the Attorney General's Office stated that this proposal would have little or minimal fiscal impact to their agency.
Officials of the Department of Revenue (DOR) state this legislation prohibits grey market cigarettes. Normally these are cigarettes that are made for overseas markets, they are loaded on a ship sometimes for shipment and somehow find their way back to the US. This legislation will have no administrative impact on Department of Revenue. There could possibly be a very small increase in taxable cigarette sales if this somewhat non-taxable market is eliminated, but it would be too small to estimate.
Based on the Department of Revenue's response, Oversight for purposes of this fiscal note, will reflect the fiscal impact of the proposal as zero.
| FISCAL IMPACT - State Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This act prohibits a tax stamp from being affixed to any package of cigarettes unless certain federal requirements are met. No stamp shall be affixed to any package that is labeled as not intended for sale inside the United States or has a label that has been altered. A violation is a Class D felony, and is also deemed a deceptive act or practice. The Department of Revenue may
DESCRIPTION
(Continued)
revoke a wholesale license of a person in violation of these provisions, and may seize the items involved.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Office of Prosecution Services
Office of State Courts Administrator
Office of the State Public Defender
Office of the Attorney General
Department of Corrections
Department of Revenue
Department of Public Safety
Jeanne Jarrett, CPA
Director
January 24, 2000