Utah Code 59-14-204. Tax basis — Rate — Future increase — Cigarette Tax Restricted Account — Appropriation and expenditure of revenues

59-14-204. Tax basis — Rate — Future increase — Cigarette Tax Restricted Account — Appropriation and expenditure of revenues.

(1)	Except for cigarettes described under Subsection 59-14-210(3), there is levied a tax upon the sale, use, storage, or distribution of cigarettes in the state.

Terms Used In Utah Code 59-14-204

Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
Cigarette: means a roll made wholly or in part of tobacco:

(a)

regardless of:

(i)	the size of the roll;

(ii)	the shape of the roll;

(iii)

whether the tobacco is flavored, adulterated, or mixed with any other ingredient; or

(iv)	whether the tobacco is heated or burned; and

(b)

if the roll has a wrapper or cover that is made of paper or any other substance or material except tobacco. See Utah Code 59-14-102

Consumer: means a person that is not required:

(a)	under Section 59-14-201 to obtain a license under Section 59-14-202;

(b)	under Section 59-14-301 to obtain a license under Section 59-14-202; or

(c)

to obtain a license under Section 59-14-803. See Utah Code 59-14-102

Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.

Importer: means a person that imports into the United States, either directly or indirectly, a finished cigarette for sale or distribution. See Utah Code 59-14-102

manufacturer: means a person that:

(i)	manufactures, fabricates, assembles, processes, or labels a finished cigarette; or

(ii)

makes, modifies, mixes, manufactures, fabricates, assembles, processes, labels, repackages, relabels, or imports an electronic cigarette product or a nicotine product. See Utah Code 59-14-102

Person: means :Utah Code 68-3-12.5

Retailer: means a person that:

(a)	sells or distributes a cigarette, an electronic cigarette product, or a nicotine product to a consumer in the state; or

(b)

intends to sell or distribute a cigarette, an electronic cigarette product, or a nicotine product to a consumer in the state. See Utah Code 59-14-102

State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5

(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 per thousand cigarettes; and

(b)	9.963 cents on each cigarette, for all cigarettes weighing in excess of three pounds per thousand 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 the same 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)

The Cigarette Tax Restricted Account consists of:

(i)	the first $7,950,000 of the revenues collected from a tax under this section; and

(ii)	any other appropriations the Legislature makes to the Cigarette Tax Restricted Account.

(c)

For each fiscal year beginning with fiscal year 2011-12 and subject to appropriation by the Legislature, the Division of Finance shall distribute money from the Cigarette Tax Restricted Account as follows:

(i)	$250,000 to the Department of Health to be expended for a tobacco prevention and control media campaign targeted towards children;

(ii)	$2,900,000 to the Department of Health to be expended for tobacco prevention, reduction, cessation, and control programs;

(iii)

$2,000,000 to the University of Utah Health Sciences Center for the Huntsman Cancer Institute to be expended for cancer research; and

(iv)	$2,800,000 to the University of Utah Health Sciences Center to be expended for medical education at the University of Utah School of Medicine.

(d)	In determining how to appropriate revenue deposited into the Cigarette Tax Restricted Account that is not otherwise appropriated under Subsection (5)(c), the Legislature shall give particular consideration to enhancing Medicaid provider reimbursement rates and medical coverage for the uninsured.

Amended by Chapter 168, 2016 General Session

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