Cigarette  tax-2.

03LSO-0162.C1

                                                         

FISCAL NOTE (HB0110)

 

FY 2004

FY 2005

FY 2006

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Revenue Increase:

 

 

 

EARMARKED REVENUE

14,817,187

14,817,187

14,817,187

LOCAL SOURCES FUND

5,258,594

5,258,594

5,258,594

WYO TOBACCO SETTLE INCOME

5,258,594

5,258,594

5,258,594

 

Source of revenue increase: Increase in the cigarette tax.

 

Assumptions:

  1. Assumed a linear relationship between the current taxes collected and the percentage increase. Inflation is not factored in due to the anticipation of some decline in sales volume. This cigarette tax increase is estimated at $25,334,375 per year.

 

  1. The Child Health Insurance Program currently costs approximately $4.3 million per year. This amount is included in the table above in FY 2004, FY 2005, and FY 2006 (EARMARKED REVENUE).

 

  1. The remaining revenue increase is to be distributed as follows:

¨      25% shall be distributed and is continuously appropriated to the Department of Health for the prescription drug assistance program (EARMARKED REVENUE).

¨      25% shall be distributed and is continuously appropriated to the Department of Health to increase the reimbursement rate to health care providers under the Wyoming Medical Assistance and Services Act (EARMARKED REVENUE).

¨      25% shall be deposited into the Wyoming Tobacco Settlement Trust Fund Income Account, continuously appropriated to the substance abuse control plan (WYO TOBACCO SETTLE INCOME).

¨      25% shall be distributed to cities, towns and counties (LOCAL SOURCES FUND).

 

  1. Effective July 1, 2006, (FY 2007), this tax increase will be deposited in the General Fund.

 

  1. If there is a substantial reduction in sales volume because of the tax increase, there will not be a linear gain in revenue and general fund revenues could be decreased. This potential impact on overall revenue is indeterminable.

 

Prepared by:   Dean Temte, LSO    Phone:   777-7881

(information provided by Dan Noble, Dept. of Revenue; phone 777-5220: Patricia Guzman, Dept. of Health; phone 777-6228)