A BILL TO BE ENTITLED
AN ACT to increase the excise tax on cigarettes and other tobacco products.
Whereas, North Carolina's excise tax on cigarettes is currently five cents (5¢) a pack, the second lowest in the nation; and
Whereas, the use of tobacco products is the leading cause of preventable death and disability in North Carolina; and
Whereas, the use of tobacco products costs the State four billion seven hundred fifty million dollars ($4,750,000,000) in medical costs and lost productivity annually; and
Whereas, 24,600 North Carolina children become new daily smokers each year, a rate of 67 new daily child smokers everyday; and
Whereas, the best way to prevent and reduce tobacco use by children is to substantially increase the cost of cigarettes; and
Whereas, such a tax increase would result in a fifteen and seven‑tenths percent (15.7%) decrease in youth smoking rates, prevent 101,000 North Carolina children from starting to smoke, and save 32,300 North Carolina children from premature smoking‑related deaths; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑113.5 reads as rewritten:
"§ 105‑113.5.  Tax on cigarettes.
A tax is levied on the sale or possession for sale in this State, by a distributor, of all cigarettes at the rate of four cents (4¢) per individual cigarette."
SECTION 2.  G.S. 105‑113.35 reads as rewritten:
"(a)	Tax. – An excise tax is levied on tobacco products other than cigarettes at the rate of thirty‑two percent (32%) of the cost price of the products. This tax does not apply to the following:
(1)	A tobacco product sold outside the State.
(2)	A tobacco product sold to the federal government.
(3)	A sample tobacco product distributed without charge."
SECTION 3.  This act becomes effective July 1, 2005.