2002 Senate Bill 1360

Introduced in the Senate

May 23, 2002

Introduced by Sen. Joel Gougeon (R-34)

To increase the state tobacco tax from 75 cents per pack of cigarettes to $1 per pack. Until Sept. 30, 2004 the increased revenue would be used to pay for health care programs currently provided by the state, and after that 94 percent of it would go into the Budget Stabilization Fund (“rainy day fund”).

Referred to the Committee on Finance

May 30, 2002

Amendment offered by Sen. Beverly Hammerstrom (R-17)

To increase the portion of the tax which cigarette sellers get to keep as reimbursement for the cost of collecting and sending in the tax.

The amendment passed by voice vote

Amendment offered by Sen. Joel Gougeon (R-34)

To clarify a technical provision in the bill so the language of the amended law is internally consistent.

The amendment passed by voice vote

Substitute offered by Sen. Joel Gougeon (R-34)

To replace the previous version of the bill with a version which increases the cigarette tax by 30-cents, to $1.05 per pack. One-cent of the increase would be disbursed to Wayne County to pay for health care provided to indigent persons, which the county says is now paid for by its portion of a Metro Airport parking tax likely to be reduced by House Bill 4454.

The substitute failed by voice vote

Failed in the Senate 8 to 29 (details)

Received in the House

May 30, 2002

To increase the state tobacco tax from 75 cents per pack of cigarettes to $1 per pack. Until Sept. 30, 2004 the increased revenue would be used to pay for health care programs currently provided by the state, and after that 94 percent of it would go into the Budget Stabilization Fund (“rainy day fund”).