The Act increases the excise tax on little cigars, cigars, cigarettes and imposes a tax on loose tobacco. The tax on little cigars increases from two mills each to two and one-half mills each. The Act increases the tax on other cigars to 23% of the wholesale cost price, an increase of 10% over the former rate. The Act increases the tax on cigarettes from 12 cents per pack to 37 cents per pack. The Act creates a tax on loose or smokeless tobacco at a rate of 10% of the wholesale cost price. The Act subjects loose tobacco to the same requirements formerly imposed only on cigarettes and cigars, including licensing requirements, reporting procedures, and criminal repercussions for noncompliance. The Act does not require a person to pay tax on loose tobacco if the person brings the tobacco into the state on his person and the amount does not exceed six containers. The Act also affects areas that fall outside of the scope of this Legislative Review, as this Review only focuses on the Act's tobacco tax requirements.
"REVENUE AND TAXATION Cigar, Cigarette, and Loose Tobacco Taxes: Increase Excise Tax Rate on Little Cigars, Cigars, and Cigarettes and Impose Excise Tax on Loose Tobacco,"
Georgia State University Law Review: Vol. 20
, Article 19.
Available at: http://readingroom.law.gsu.edu/gsulr/vol20/iss1/19