Introduced
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To raise the state cigarette tax by 75 cents a pack beginning Oct. 1, 2004, increase taxes on other tobacco products by a proportionate amount, and use most of the money to avoid budget cuts by reducing general fund contributions to Medicaid. The cigarette tax would increase to $2 a pack, making it the second highest in the nation. The proposal is related to Gov. Jennifer Granholm’s Fiscal Year 2005 budget recommendation. It would also eliminate the earmark of a portion of a 2002 tobacco tax increase to the budget stabilization fund (rainy day fund).
Referred to the Committee on Commerce
Substitute offered
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To replace the previous version of the bill with one that would raise the state cigarette tax by 75 cents a pack beginning July 1, 2004, but not increase taxes on other tobacco prouducts. All of the increased revenue generated between July 1 and Sept. 30, 2004 would go to the School Aid Fund to make up a shortfall in the 2004 school aid budget. Almost all of the new revenue generated in FY 2005 would go to the general fund.
The substitute failed by voice vote
Failed in the House 44 to 53 (details)
To raise the state cigarette tax by 75 cents a pack beginning July 1, 2004, increase taxes on other tobacco products from 20 percent to 32 percent, and use most of the money to avoid budget cuts by reducing general fund contributions to Medicaid.
Received
Motion to reconsider
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The vote by which the bill was defeated. The motion was gaveled through on a "voice vote," and then postponed for the day. This means the bill could be brought up for another vote at any time.
Consideration postponed
Substitute offered
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To replace the previous version of the bill with one that raises the cigarette tax by 75 cents beginning July 1, 2004, and also increases taxes on other tobacco prouducts. Almost all of the new revenue generated in FY 2005 would go to Medicaid. There would also be increased funding for government programs intended to reduce smoking. The bill eliminates a requirement in current law that $154 million of next year’s tobacco tax revenue to the Budget Stabilization Fund (BSF or "rainy day" fund). Note: Under current law, previously adopted Single Business Tax (SBT) cuts are postponed until the BSF balance rises above $250 million.
The substitute passed by voice vote
Amendment offered
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To earmark the revenue raised from the extra tax collected on cigarettes that are already in vendors' inventory to the General Fund, instead of the Medicaid Trust Fund. The amendment was later reconsidered and defeated, but an identical amendment was eventually adopted.
The amendment passed by voice vote
Amendment offered
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To increase Medicaid payments by four percent to auxiliary medical, nursing home, pharmacist, and ambulance services. The bill already gives the increase to hospitals. The amendment was later reconsidered and defeated, but an identical amendment by Rep. Hart was adopted.
The amendment failed by voice vote
Amendment offered
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To not increase the tax on other forms of tobacco, including cigars and smokeless tobacco.
The amendment passed 56 to 49 (details)
Amendment offered
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To give tobacco sellers a two week "grace period" after July 1 to phase in the tax after it goes into effect, so they can sell off inventory on which the previous lower tax has already been paid without having to remit the difference in tax rates to the state. Smokers would still have to pay the higher tax beginning July 1.
The amendment passed 62 to 43 (details)
Amendment offered
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To raise the tax by $10 a pack, and use half the money for programs intended to reduce smoking, and half for schools. The amendment was not seconded, and not voted on.
Consideration postponed
Amendment offered
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To use one percent of the additional revenue to fund actions intended to reduce cigarette smuggling.
The amendment passed 65 to 41 (details)
Amendment offered
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To lower the tax back to $1.25 a pack on June 30, 2007.
The amendment passed 58 to 46 (details)
Amendment offered
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To earmark the revenue raised from the extra tax collected on cigarettes that are already in vendors' inventory to the General Fund, instead of the Medicaid Trust Fund. The amendment was later reconsidered and defeated, but an identical amendment was adopted.
The amendment passed by voice vote
Amendment offered
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To earmark all of the tax on tobacco products other than cigarettes to hospitals that are level I trauma centers. The amendment was not seconded, and not voted on.
Consideration postponed
Amendment offered
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To increase Medicaid payments by four percent to auxiliary medical, nursing home, pharmacist, and ambulance services. The bill already gives the increase to hospitals.
The amendment passed by voice vote
Amendment offered
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To reduce the amount of cigarette tax revenue that goes to the Medicaid Trust Fund, and earmark a portion of the revenue to the Budget Stabilization Fund (BSF or "rainy day" fund).
The amendment failed 50 to 57 (details)
Amendment offered
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To reduce the amount of cigarette tax revenue that goes to the Medicaid Trust Fund, and earmark a portion of the revenue to the Budget Stabilization Fund (BSF or "rainy day" fund). amendment was not seconded, and not voted on.
Consideration postponed
Motion to reconsider
by
Consideration postponed
Passed in the House 55 to 53 (details)
To raise the state cigarette tax by 75 cents a pack beginning July 1, 2004, not increase taxes on other tobacco products, and use most of the money to avoid budget cuts by reducing general fund contributions to Medicaid. The cigarette tax would increase to $2 a pack, making it the second highest in the more details on how the increased revenue will be spent. The 75-cent tax hike would sunset in 2007, unless the legislature votes later to extend it.
Referred to the Committee of the Whole
Substitute offered
by
To raise the state cigarette tax by 75 cents a pack beginning July 1, 2004, increase taxes on other tobacco products by a proportionate amount, and use most of the new revenue for Medicaid.
The substitute failed 16 to 21 (details)
Substitute offered
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To raise the state cigarette tax by 75 cents a pack beginning July 1, 2004, increase taxes on other tobacco products from 20 percent to 32 percent, and place the revenue in the state general fund, instead of the Medicaid trust fund, so that it could be used to support state spending on various items, not just Medicaid.
The substitute failed 5 to 32 (details)
Substitute offered
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To replace the previous version of the bill with one that revises the distribution of the new tax revenue. As introduced, this would have used all of the new revenue for Medicaid until Oct. 1, 2004. After that, only 75 percent would go to Medicaid. Around half of the balance would go to the state general fund to pay for other government spending, and the other half would be used for subsidies to companies in the biotechnology business. However, this formula was replaced by the Swiatalski amendment. See Senate-passed version for details.
The substitute passed 22 to 13 (details)
Amendment offered
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To amend the George substitute so as to use all of the new revenue for Medicaid until Oct. 1, 2005, when 25 percent of it would go to the state general fund to pay for other government spending.
The amendment passed by voice vote
Passed in the Senate 20 to 15 (details)
To raise the state cigarette tax by 75 cents a pack beginning July 1, 2004, increase taxes on other tobacco products from 20 percent to 32 percent, and use all of the new revenue for Medicaid until Oct. 1, 2005, when 25 percent of it would go to the state general fund to pay for other government spending. The Senate version does not contain the House provision allowing tobacco sellers a two week "grace period" after July 1 during which they would retain the increased tax revenue.
Amendment offered
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To expand the free smokers quit kit program distributed as part of the state's anti-smoking programs to include a nicotine patch or nicotine gum, and divert up to half the money in certain portions of the program (approximately $1.5 million) for this use.
The amendment passed 103 to 4 (details)
Amendment offered
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To sunset the increased tax on June 30, 2007.
The amendment failed 53 to 51 (details)
Passed in the House 55 to 52 (details)
To concur with the Senate-passed version of the tobacco tax hike, with one minor change (see Johnson amendment). This final version will raise the state cigarette tax by 75 cents a pack beginning July 1, 2004, increase taxes on other tobacco products from 20 percent to 32 percent, and use all of the new revenue for Medicaid until Oct. 1, 2005, when 25 percent of it would go to the state general fund to pay for other government spending.
Passed in the Senate 20 to 15 (details)
To concur with the House-passed version of the bill, which did not make any substantive changes to the Senate version of the tax increase.
