Cigarette tax bill progresses

Posted on: 5/3/17

As of Hotline press time, the bill containing the cigarette tax measure had not been scheduled on the House agenda. Please watch for updates on email and Twitter as the situation changes.

On Monday, the Joint Committees on Appropriations and Budget passed the omnibus revenue enhancement bill, HB 2365, which includes a $1.50 cent cigarette tax and a 0.6-cent fuel tax.

HB 2365, Osborn/David, must pass by a supermajority (76 votes out of 101).
  • If you have not called your House and Senate member to support the cigarette tax, now is the time to make that call!
The provisions of HB 2365 are:

Cigarette tax – establishes a new cigarette tax equal to $.075 per cigarette. For a standard package of 20 cigarettes, the tax amounts to $1.50 per pack. The measure also creates several new funds that would be the beneficiary of the new revenue resulting from the additional cigarette tax for the 10-month period between Sept. 1, 2017 and June 30, 2018.
  • 50 percent to the Health Care Authority Enhancement Fund;
  • 23 percent to the Mental Health and Substance Abuse Services Enhancement Fund;
  • 13.5 percent to the Human Services Enhancement Fund;
  • 5.4 percent to the Oklahoma State University Medical Authority Enhancement Fund;
  • 5.4 percent to the University Hospitals Enhancement Fund; and
  • 2.7 percent to the Health Department Enhancement Fund.
After July 1, 2018, 100 percent of revenue from the additional cigarette tax would go to the Health Care Enhancement Fund. The percentages are designated for one year only because this Legislature cannot bind another Legislature to this provision. 

Fuel tax increase

HB 2365 contains a new tax on gasoline and diesel fuel equal to $.06 per gallon. Revenue from the additional gasoline and diesel fuel tax would go the Rebuilding Oklahoma Access and Driver Safety (ROADS) Fund. The $575 million cap on the ROAD’s fund will remain intact.

Sunset date for several oil gross production tax incentives

The measure advances the sunset date for several oil gross production tax incentives to Sept. 1, 2017.
(Lynne White)

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Qualivis was developed as a collaborative effort among multiple state hospital associations to meet the temporary staffing needs of member hospitals and health systems.

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