GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2017
H D
HOUSE BILL DRH40531-MCx-23A (01/13)
|
Short Title: Excise Tax Increases for Substance Abuse. |
(Public) |
|
|
Sponsors: |
Representative C. Graham. |
|
|
Referred to: |
|
|
A BILL TO BE ENTITLED
AN ACT to increase certain excise taxes to provide funding for Substance Use programs and services.
Whereas, there have been over 1,400 deaths due to drug overdose in 2015 in North Carolina; and
Whereas, in 2014, the number of drug overdoses was 50% greater than the number of persons killed in motor vehicle accidents; and
Whereas, there have been 11,551 hospitalizations due to drug overdose in 2012 in North Carolina, including 3,560 due to heroin; and
Whereas, there have been 20,981 emergency department visits in 2012 in North Carolina due to drug overdose; and
Whereas, 80% of heroin users start with prescription painkillers; and
Whereas, the number of persons receiving treatment services for heroin in 2013 is nearly double the number from 1997; and
Whereas, the North Carolina health care costs in 2011 associated with opioid abuse was approximately $582,486,663; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 105‑113.35 reads as rewritten:
"§ 105‑113.35. Tax on tobacco products other than cigarettes.
(a) Tax on Tobacco Products.
– An excise tax is levied on tobacco products at the rate of twelve and
eight‑tenths percent (12.8%) fifteen percent (15%) of the cost
price of the products. The tax rate does not apply to the following:
(1) Cigarettes subject to the tax in G.S. 105‑113.5.
(2) Vapor products subject to the tax in subsection (a1) of this section.
(a1) Tax on Vapor Products. –
An excise tax is levied on vapor products at the rate of five cents (5¢) seven
cents (7¢) per fluid milliliter of consumable product. All invoices for
vapor products issued by manufacturers must state the amount of consumable product
in milliliters.
…
(e) Use. – Of the funds collected pursuant to this section, the Secretary shall deposit to the General Fund an amount equal to twelve and eight‑tenths percent (12.8%) of the cost price of the products taxed pursuant to subsection (a) of this section and an amount equal to five cents (5¢) per fluid milliliter of consumable product pursuant to subsection (a1) of this section. The Secretary shall remit the remainder of the funds to the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services in the Department of Health and Human Services for supporting the provision of substance use programs and services."
SECTION 2. G.S. 105‑113.5 reads as rewritten:
"§ 105‑113.5. Tax on cigarettes.
(a) Rate. – 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‑fourth cents (2.25¢) three cents (3¢) per
individual cigarette.
(b) Use. – After accounting for discounts and refunds permitted pursuant to this Part, of the funds collected pursuant to this section, the Secretary shall deposit to the General Fund an amount equal to two and one‑fourth cents (2.25¢) per individual cigarette pursuant to subsection (a) of this section. The Secretary shall remit the remainder of the funds to the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services in the Department of Health and Human Services for supporting the provision of substance use programs and services."
SECTION 3. G.S. 105‑113.80(a) reads as rewritten:
"(a) Beer. – An excise
tax of sixty‑one and seventy‑one hundredths cents (61.71¢) seventy
cents (70¢) per gallon is levied on the sale of malt beverages."
SECTION 4. Part 4 of Article 2C of Subchapter I of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑113.82A. Use.
After accounting for discounts, refunds, and distributions required pursuant to this Part, of the funds collected pursuant to G.S. 105‑113.80(a), the Secretary shall deposit to the General Fund an amount equal to sixty‑one and seventy‑one hundredths cents (61.71¢) per gallon levied on the sale of malt beverages. The Secretary shall remit the remainder of the funds to the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services in the Department of Health and Human Services for supporting the provision of substance use programs and services."
SECTION 5. G.S. 105‑113.35, as amended by Section 1 of this act, reads as rewritten:
"§ 105‑113.35. Tax on tobacco products other than cigarettes.
(a) Tax on Tobacco Products.
– An excise tax is levied on tobacco products at the rate of fifteen percent
(15%)twelve and eight‑tenths percent (12.8%) of the cost price
of the products. The tax rate does not apply to the following:
(1) Cigarettes subject to the tax in G.S. 105‑113.5.
(2) Vapor products subject to the tax in subsection (a1) of this section.
(a1) Tax on Vapor Products. –
An excise tax is levied on vapor products at the rate of seven cents (7¢)five
cents (5¢) per fluid milliliter of consumable product. All invoices for
vapor products issued by manufacturers must state the amount of consumable
product in milliliters.
…
(e) Use. – Of the funds collected pursuant to this
section, the Secretary shall deposit to the General Fund an amount equal to
twelve and eight‑tenths percent (12.8%) of the cost price of the products
taxed pursuant to subsection (a) of this section and an amount equal to five cents
(5¢) per fluid milliliter of consumable product pursuant to subsection (a1) of
this section. The Secretary shall remit the remainder of the funds to the
Division of Mental Health, Developmental Disabilities, and Substance Abuse
Services in the Department of Health and Human Services for supporting the
provision of substance use programs and services."
SECTION 6. G.S. 105‑113.5, as amended by Section 2 of this act, reads as rewritten:
"§ 105‑113.5. Tax on cigarettes.
(a) Rate. – A tax is levied on the sale or
possession for sale in this State, by a distributor, of all cigarettes at the
rate of three cents (3¢)two and one‑fourth cents (2.25¢)
per individual cigarette.
(b) Use. – After accounting for discounts and
refunds permitted pursuant to this Part, of the funds collected pursuant to
this section, the Secretary shall deposit to the General Fund an amount equal
to two and one‑fourth cents (2.25¢) per individual cigarette pursuant to
subsection (a) of this section. The Secretary shall remit the remainder of the
funds to the Division of Mental Health, Developmental Disabilities, and
Substance Abuse Services in the Department of Health and Human Services for
supporting the provision of substance use programs and services."
SECTION 7. G.S. 105‑113.80(a), as amended by Section 3 of this act, reads as rewritten:
"(a) Beer. – An excise
tax of seventy cents (70¢)sixty‑one and seventy‑one
hundredths cents (61.71¢) per gallon is levied on the sale of malt
beverages."
SECTION 8. G.S. 105‑113.82A, as enacted by Section 4 of this act, is repealed.
SECTION 9. Sections 1, 2, 3, and 4 of this act become effective July 1, 2017. Sections 5, 6, 7, and 8 of this act become effective July 1, 2019. The remainder of this act is effective when it becomes law.