HOUSE BILL REPORT

HB 209

BYRepresentatives Appelwick, Taylor, Sayan and Holland; by request of Department of Revenue

Expanding enforcement provisions on cigarette taxes.

House Committe on Ways & Means/Revenue

Majority Report:     Do pass.  (10)

     Signed by Representatives Appelwick, Chair; Basich, Grimm, Holland, Madsen, Rust, Schoon, Taylor, Valle and Winsley.

House Staff:Rick Wickman (786-7150)

AS PASSED HOUSE MARCH 2, 1987

BACKGROUND:

The Department of Revenue is responsible for investigation and enforcement of cigarette tax violations and for seizure of contraband cigarettes.  The department has encountered problems of enforceability.

SUMMARY:

Criminal penalties based upon the volume of seized contraband cigarettes are imposed. State statutes are updated to conform with current guidelines on search and seizure, to provide consistency and uniformity with federal tax laws on bootlegging of cigarettes, and to provide for forfeiture of vehicles and other personal property used to transport or conceal contraband goods.

EFFECT OF SENATE AMENDMENT(S):  Cigarette wholesalers and retailers are allowed compensation at the rate of $4 per 1,000 cigarette stamps purchased and affixed instead of 2 percent of the first four mills; 1 percent of the next one mill; and one-half of one percent of the next one-half mill of value of stamps purchased and affixed.

Fiscal Note:    Attached.

House Committee ‑ Testified For:     Barney McClure, Department of Revenue.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Provides enforcement procedures for contraband cigarettes and authorizes seizure of personal property used to transport or conceal contraband goods.

House Committee - Testimony Against: None Presented.