A BILL TO BE ENTITLED
AN ACT to increase the tax for cigarettes and other tobacco products.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑113.5 reads as rewritten:
"§ 105‑113.5.  (Effective July 1, 2006) 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 two and one‑half cents (2.50¢) per individual cigarette."
SECTION 2.  G.S. 105‑113.35(a) reads as rewritten:
"(a)	Tax. – An excise tax is levied on tobacco products other than cigarettes at the rate of twenty percent (20%) 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, 2007.