59-14-204 - Tax basis -- Rate -- Future increase -- Restricted account -- Use of revenues. - Utah Statutes

59-14-204. Tax basis -- Rate -- Future increase -- Restricted account -- Use ofrevenues.
(1) Except for cigarettes described under Subsection 59-14-210(3), there is levied a taxupon the sale, use, storage, or distribution of cigarettes in the state.
(2) The rates of the tax levied under Subsection (1) are, beginning on July 1, 2010:
(a) 8.5 cents on each cigarette, for all cigarettes weighing not more than three pounds perthousand cigarettes; and
(b) 9.963 cents on each cigarette, for all cigarettes weighing in excess of three pounds perthousand cigarettes.
(3) Except as otherwise provided under this chapter, the tax levied under Subsection (1)shall be paid by any person who is the manufacturer, jobber, importer, distributor, wholesaler,retailer, user, or consumer.
(4) The tax rates specified in this section shall be increased by the commission by thesame amount as any future reduction in the federal excise tax on cigarettes.
(5) (a) There is created within the General Fund a restricted account known as the"Cigarette Tax Restricted Account."
(b) Beginning on July 1, 1998, $250,000 of the revenues generated by the increase in thecigarette tax under this section enacted during the 1997 Annual General Session shall be annuallydeposited into the account.
(c) The Department of Health shall expend the funds deposited in the account underSubsection (5)(b) for a tobacco prevention and control media campaign targeted towardschildren.
(d) The following revenue generated from the tax increase imposed under Subsection (1)during the 2002 General Session shall be deposited in the Cigarette Tax Restricted Account:
(i) 22% of the revenue to be annually appropriated to the Department of Health fortobacco prevention, reduction, cessation, and control programs;
(ii) 15% of the revenue to be annually appropriated to the University of Utah HealthSciences Center for the Huntsman Cancer Institute for cancer research; and
(iii) 21% of the revenue to be annually appropriated to the University of Utah HealthSciences Center for medical education at the University of Utah School of Medicine.
(e) The Legislature shall give particular consideration to appropriating any revenuesresulting from the change in tax rates under Subsection (2) adopted during the 2002 AnnualGeneral Session and not otherwise appropriated pursuant to Subsection (5)(d) to enhanceMedicaid provider reimbursement rates and medical coverage for the uninsured.
(f) Any program or entity that receives funding under Subsection (5)(d) shall provide anannual report to the Health and Human Services Interim Committee no later that September 1 ofeach year. The report shall include:
(i) the amount funded;
(ii) the amount expended;
(iii) a description of the effectiveness of the program; and
(iv) if the program is a tobacco cessation program, the report required in Section51-9-203.

Amended by Chapter 407, 2010 General Session
Amended by Chapter 407, 2010 General Session, (Coordination Clause)
Amended by Chapter 415, 2010 General Session