South Carolina General Assembly
116th Session, 2005-2006

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H. 4888

STATUS INFORMATION

General Bill
Sponsors: Reps. Rice, Agnew, E.H. Pitts, Ballentine, Clark, Bannister and Davenport
Document Path: l:\council\bills\nbd\12314ac06.doc

Introduced in the House on March 23, 2006
Currently residing in the House Committee on Ways and Means

Summary: Cigarette tax increase

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   3/23/2006  House   Introduced and read first time HJ-15
   3/23/2006  House   Referred to Committee on Ways and Means HJ-15
    4/6/2006  House   Member(s) request name added as sponsor: E.H.Pitts, 
                        Ballentine, Clark, Bannister, Davenport

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

3/23/2006

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-635 SO AS TO IMPOSE AN ADDITIONAL TAX OF 1.5 CENTS PER CIGARETTE AND TO PROVIDE THAT THIS TAX MUST BE INCREASED .25 CENT PER CIGARETTE ANNUALLY FOR TWO YEARS BEGINNING ONE YEAR AFTER THIS TAX TAKES EFFECT; TO ESTABLISH THE YOUTH SMOKING PREVENTION AND CESSATION FUND INTO WHICH MUST BE DEPOSITED FOUR PERCENT OF THE REVENUE GENERATED FROM THE IMPOSITION OF THIS TAX TO BE USED BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL FOR YOUTH SMOKING PREVENTION AND CESSATION PROGRAMS; TO PROVIDE THAT ONE PERCENT OF THE REVENUE GENERATED FROM THE IMPOSITION OF THIS TAX MUST BE CREDITED TO THE DEPARTMENT OF AGRICULTURE FOR RESEARCH AND PROMOTION OF HEALTHY LIFESTYLES WITH FOOD GROWN IN THIS STATE; AND TO ESTABLISH THE SOUTH CAROLINA HEALTH AND PREVENTION FUND AND TO PROVIDE THAT THE REMAINING REVENUE GENERATED BY THIS TAX MUST BE CREDITED TO THIS FUND AND APPROPRIATED ANNUALLY BY THE GENERAL ASSEMBLY TO CRITICAL PROGRAMS THAT MEET THE HEALTH NEEDS OF SOUTH CAROLINIANS, INCLUDING USING SUCH FUNDS FOR MEDICAID MATCHING FUNDS.

Whereas, the General Assembly finds that:

(1)    Smoking is the single most important source of preventable disease and premature death in South Carolina.

(2)    The annual health care cost in South Carolina directly caused by smoking is one billion dollars.

(3)    More than eight thousand South Carolina children under the age of eighteen years will become new daily smokers each year.

(4)    Increasing tobacco taxes is an effective way to prevent and reduce smoking, especially among young people. Now, therefore,

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-635.    (A)    In addition to the tax imposed pursuant to Section 12-21-620(1), there is imposed an additional license tax equal to 1.5 cents on each cigarette made of tobacco or any substitute for tobacco. This tax must be increased by .25 cents on each cigarette made of tobacco or any substitute for tobacco each year over the following two years beginning one year after this section takes effect.

(B)    The tax imposed pursuant to subsection (A) must be reported, paid, collected, and enforced in the same manner as the tax imposed pursuant to Section 12-21-620(1).

(C)(1)    There are created in the state treasury, separate and distinct from the general fund of the State, the Youth Smoking Prevention and Cessation Fund and the South Carolina Health and Prevention Fund. Four percent of the revenue generated by the tax imposed pursuant to this section must be credited to the Youth Smoking Prevention and Cessation Fund and monies in the fund must be used by the Department of Health and Environmental Control in accordance with the Centers for Disease Control recommended comprehensive programs using best practices for youth smoking prevention and cessation programs. One percent of the revenue generated by the tax imposed pursuant to this section must be credited to the Department of Agriculture for research and promotion of healthy lifestyles with food grown in this State. The remaining revenue generated by the tax imposed pursuant to this section must be credited to the South Carolina Health and Prevention Fund. In the annual appropriations act, the General Assembly shall appropriate the monies from the South Carolina Health and Prevention Fund to critical programs that meet health needs of South Carolinians, including using funds for a Medicaid match each year, as needed.

(2)    These funds are exempt from budgetary cuts or reductions caused by the lack of general fund revenues. Earnings on investments of monies in the funds must be credited to the respective fund and used for the same purposes as other monies in the funds. Any monies in the funds not expended during a fiscal year must be carried forward to the succeeding fiscal year and used for the same purposes."

SECTION    2.    This act takes effect on the first day of the second month following the month in which this act is approved by the Governor.

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