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Committee debates raising tobacco stamp discount to 3.75% amid warnings of $800K–$1.2M Healthy Futures loss
Summary
Senators examined Bill 205-38 COR to raise the tobacco tax-stamp discount to 3.75% to offset distributorscompliance costs; Department of Revenue and Taxation said full compliance is now required but warned the change could reduce Healthy Futures Fund revenue by roughly $850,000–$1,200,000 annually.
The Committee of the Whole heard Bill 205-38 COR, introduced by Senator Augustine, to amend Title 11, Chapter 6, to increase the discount paid to licensed distributors for affixing tobacco tax stamps from 0.4% to 3.75% (three and three-quarter percent).
Senator Augustine said the increase responds to higher compliance costs for distributors, including purchase and maintenance of stamping machines and labor to affix stamps to packs. "This discount is simply to cover the cost of machine equipment and temp materials, training to operate and maintain equipment," he told the panel.
Representatives of the…
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