PRINTER'S NO. 4033
No. 2709 Session of 2002
INTRODUCED BY DeLUCA, SAYLOR, SOLOBAY, CIVERA, MICOZZIE, BOYES,
BELFANTI, BEBKO-JONES, BENNINGHOFF, BUNT, CAPPELLI,
L. I. COHEN, M. COHEN, COLAFELLA, CORNELL, COSTA, CREIGHTON,
CRUZ, DALEY, DeWEESE, GRUCELA, HANNA, HARPER, HERSHEY,
BELARDI, HORSEY, JAMES, KIRKLAND, LAUGHLIN, LEVDANSKY,
MARKOSEK, McCALL, McGEEHAN, MELIO, MICHLOVIC, PALLONE,
PETRONE, PIPPY, PISTELLA, READSHAW, ROBERTS, SHANER, STABACK,
STEELMAN, SURRA, THOMAS, TIGUE, TRAVAGLIO, WALKO, WANSACZ,
WOJNAROSKI, ZIMMERMAN, TRELLO, DERMODY, DIVEN, TANGRETTI,
ROONEY, CURRY, COY, YEWCIC, SCHULER, R. STEVENSON, HARHAI,
GRUITZA, VEON, EACHUS, LUCYK AND J. WILLIAMS, JUNE 17, 2002
REFERRED TO COMMITTEE ON FINANCE, JUNE 17, 2002
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," increasing the excise tax rate on cigarettes;
11 further providing for cigarette tax incidence and rate, for
12 cigarette floor tax and for disposition of cigarette tax
13 revenue.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 Section 1. Sections 1206 and 1206.1 of the act of March 4,
17 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
18 amended or added August 4, 1991 (P.L.97, No.22), are amended to
19 read:
1 Section 1206. Incidence and Rate of Tax.--An excise tax is
2 hereby imposed and assessed upon the sale or possession of
3 cigarettes within this Commonwealth at the rate of [one and
4 fifty-five hundredths] one seventy-second of a cent per
5 cigarette.
6 Section 1206.1. Floor Tax.--Any person who possesses
7 cigarettes on which the tax imposed by section 1206 of this
8 article has been paid as of the effective date of this section
9 shall pay an additional tax at a rate of [sixty-five hundredth
10 cents] eighty-two hundredths of a cent per cigarette. The tax
11 shall be reported and paid on a form prescribed by the
12 department. In addition to the interest and penalties provided
13 in section 1278 of this article, failure to file said report and
14 pay said tax within sixty days of the effective date of this
15 section may result in a penalty of two hundred fifty dollars
16 ($250). This penalty shall be added to the tax and assessed and
17 collected at the same time in the same manner and as a part of
18 the tax.
19 Section 2. Section 1296 of the act, amended May 7, 1997
20 (P.L.85, No.7), is amended to read:
21 Section 1296. Disposition of Certain Funds.--All cigarette
22 tax revenues collected by the Department of Revenue under this
23 article and heretofore paid into the Parent Reimbursement Fund
24 in accordance with the act of August 27, 1971 (P.L.358, No.92),
25 known as the "Parent Reimbursement Act for Nonpublic Education,"
26 shall be transferred into the General Fund. Beginning July 1,
27 1993, two thirty-firsts of cigarette tax receipts shall be
28 transferred into the Agricultural Conservation Easement Purchase
29 Fund, and beginning January 1, 1997, three thirty-firsts of
30 cigarette tax receipts shall be paid into a restricted account
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1 to be known as the Children's Health Fund for health care for
2 indigent children, and the remainder shall be paid into the
3 General Fund. Moneys in the Children's Health Fund shall not be
4 expended until the enactment of legislation to implement a
5 program of expanded access to health care for children. The
6 additional cigarette tax receipts resulting from the increase of
7 the rates set forth in sections 1206 and 1206.1 per cigarette
8 shall be paid into the Volunteer Fire Company and Volunteer
9 Ambulance Service Grant Fund and dedicated to funding the grant
10 program established by the act of June 22, 2000 (P.L.477,
11 No.66), known as the "Volunteer Fire Company and Volunteer
12 Ambulance Service Grant Act." The transfers required by this
13 section shall be made by July 15 for the preceding six months
14 and by January 15 for the preceding six months.
15 Section 3. This act shall take effect in 60 days.
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