A BILL TO BE ENTITLED
AN ACT to increase the excise tax on cigarettes.
Whereas, tobacco use continues to be a major health concern among youth in the State; and
Whereas, research shows that secondhand smoke is harmful to nonsmokers and results in increasing medical costs being borne by the general public; and 
Whereas, future costs of health care, such as Medicare and Medicaid, would be significantly reduced if youth did not take up smoking; and
Whereas, according to the Centers for Disease Control and Prevention, raising the price of a pack of cigarettes, through a tax, is the most effective way to prevent youth from smoking; and
Whereas, studies also show that raising the price of a pack of cigarettes, through a tax, is the most effective way to prevent pregnant women from smoking and therefore prevents harm to unborn children; and
Whereas, North Carolina's cigarette tax is the second lowest in the nation; 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(a) reads as rewritten:
"§ 105‑113.35.  Tax on tobacco products other than cigarettes.
(a)	Tax. – An excise tax is levied on tobacco products other than cigarettes at the rate of thirty percent (30%) 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.