02RS HB677


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HB 677/FN (BR 1771) - M. Marzian, J. Draud, I. Branham, P. Bather, T. Burch, T. Feeley, R. Meeks, K. Stein, G. Stumbo, J. Wayne, S. Westrom

     AN ACT relating to revenue and taxation, and making an appropriation therefor.
     Create new sections of KRS Chapter 142 to impose a tax of 32% of the gross receipts of wholesale sales of smokeless tobacco, cigars, loose tobacco, and pipe tobacco and specify that funds received shall be deposited into a new children's dental care fund; exempt sales between wholesalers and distributors; require certificate of registration; require tax returns; permit time extension for filing tax returns; require interest on tax not paid by date due; permit offset payments; require wholesalers and distributors to keep records for 4 years; permit tax refunds and credits; permit civil penalties for violations; amend KRS 138.140 to impose a surtax of $.44 per pack of cigarettes and specify that funds received shall be deposited into a new Commonwealth fund; amend KRS 138.146 to specify that the tax evidence compensation remains at $.30 per $3 and require the $.44 tax to be paid at the time of purchase of tax evidence stamps; amend KRS 248.652 to specify that the $0.03 tax remains credited to the agriculture diversification and development fund; amend KRS 438.335 to specify that the Department of Agriculture retains $0.0005 of the $0.03 tax; amend KRS 438.337 to specify that the Department of Alcoholic Beverage Control retains $0.0005 of the $0.03 tax; create new sections of KRS Chapter 41 to establish a children's dental care fund from the tax imposed on smokeless tobacco, cigars, loose and pipe tobacco and to create a Commonwealth fund from the surtax imposed on cigarettes and specify use of cigarette tax money for mental health and substance abuse services, cost-of-living pay raises for certified and classified public school employees, smoking cessation, public school construction or renovation for local school districts with growth in enrollment, and the state general fund; require any agency or entity receiving moneys from the Commonwealth fund to report on use of the funds; create a new section of KRS Chapter 194A to require the Department for Public Health to administer the children's dental fund for children whose family income is below 250% of the federal poverty level, and require the Cabinet for Health Services to report on the use of funds; APPROPRIATION; EFFECTIVE August 1, 2002.


     HFA (1, T. Feeley) - Retain original provisions except change the amount of additional cigarette tax from $.44 to $.09 per pack and delete limits on appropriations from revenue received from the additional tax.

     Feb 14-introduced in House
     Feb 15-to Appropriations and Revenue (H); floor amendment (1) filed
     Feb 19-floor amendment (1) withdrawn
     Mar 15-posted in committee

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