• About Us
  • Advertise
  • Contact Us
  • Privacy Policy
Tuesday, July 5, 2022
The Iowa Torch
  • Home
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion
No Result
View All Result
  • Home
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion
The Iowa Torch
The Iowa Torch
No Result
View All Result
Home State Government

Tax Revenue from Tobacco Sales in Iowa Could Increase by $324K in FY 2022

The Iowa Department of Revenue's proposed rule is estimated to increase tobacco tax revenue collected for the Health Care Trust Fund by $324,000 for FY 2022.

Mary StrokabyMary Stroka
August 19, 2021
in State Government
Reading Time: 3 mins read
Tax Revenue from Tobacco Sales in Iowa Could Increase by $324K in FY 2022

Photo by lilartsy from Pexels.

(The Center Square) – Tax revenue from tobacco sales could increase by $324,000 this fiscal year after the Iowa Department of Revenue identified an inconsistency in the application of the price on which taxes should be calculated.

RELATED POSTS

Reynolds to ask Iowa Courts to reconsider recent abortion rulings

Post Roe, state elected officials pledge abortion debate in Iowa

Iowa Supreme Court rules there is no right to abortion in state constitution

The Department of Revenue has proposed a new subrule, 83.4(2), “to provide clarity going forward” regarding the sales of tobacco products, the department said in its notice of intended action regarding the rule.

With the subrule, tobacco products sold by manufacturers to distributors at discounted prices, “a lower wholesale sales price” than products that contain the same ingredients and the same package size, would be taxed at “the highest wholesale sales price for that product.” Examples of discounted tobacco products include pre-priced cigars and reduced-priced multipacks of tobacco products.

Six people spoke about the subrule during the public comment portion of the August 17 Administrative Rules Review Committee meeting, Iowa Department of Revenue Public Information Officer John Fuller told The Center Square.

ADVERTISEMENT

Kathy Gunlock with Core-Mark Midcontinent said during public comment on August 17 she is concerned the addition of the subrule could drive sales across the Iowa border and “create a bigger opportunity for the black market to step in and take advantage of these tax laws and bypassing them.”

Core-Mark Midcontinent Vice President of Sales Iowa/Minnesota Chris Molinsky said the company would not be able to afford to apply full-time staff to monitor manufacturing costs.

The department received “some” responses from the public during a 20-day comment period on the subrule that ended August 17 and has 180 days to review submitted commentary and determine whether it would like to adopt and whether it would like to make any changes to the subrule, the unnamed official said.

“When analyzing whether a tobacco product is discounted for purposes of this rule, the department will consider the manufacturer’s characterization of the tobacco product on the price list, but the manufacturer’s characterization of the tobacco product will not be controlling in the department’s determination,” the notice said.

Anyone who believes the application of the discretionary purposes of the rulemaking would result in hardship or injustice can petition the department for a waiver.

Revenues from tax sales are deposited in the Health Care Trust Fund, which can be used for health care, substance abuse treatment and prevention, and tobacco use prevention, cessation, and control.

The proposed rule is estimated to increase tobacco tax revenue collected for the Health Care Trust Fund by $324,000 for FY 2022, $327,000 for FY 2023, $331,000 for FY 2024, and $334,000 for FY 2025, according to the Legislative Services Agency’s fiscal impact summary.

The Iowa Directory of Certified Tobacco Product Manufacturers is available on the Department of Revenue’s website.

About 16.4 percent of Iowans smoked in 2019, according to the Centers for Disease Control and Prevention’s Behavioral Risk Factor Surveillance System.

Tags: Core-Mark MidcontinentIowa Department of RevenueLegislative Services Agencytobacco sales
ShareTweetShare
ADVERTISEMENT
Previous Post

Axne Says She Supports Withdrawing from Afghanistan

Next Post

Axne Urges Reynolds to Utilize Rejected COVID-19 Testing Funds for Schools

Mary Stroka

Mary Stroka

Mary Stoka is a freelance writer, editor, journalist, and public relations professional who lives in Chicago, Ill.

Related Posts

Cigarette, smoking, tobacco
State Government

Iowa receives $53.2 million tobacco payment

April 20, 2022
Hendrickson: Fiscal Conservatism Works
State Government

State of Iowa’s net revenue is expected to decline slightly over next two years

March 11, 2022
Iowa Tourism Office Encourages Exploration of State During Family Week
State Government

Nineteen companies received $36.2 million in refundable tax credits from Iowa

February 18, 2022
State Government

Reynolds Requests ‘Status Quo’ on State Medicaid Funding

January 28, 2022
State Government

A Look At The Second Redistricting Map

October 22, 2021
State Government

Republicans Call for Tax Cuts After Revenue Estimating Conference

October 18, 2021
Next Post
Axne Urges Reynolds to Utilize Rejected COVID-19 Testing Funds for Schools

Axne Urges Reynolds to Utilize Rejected COVID-19 Testing Funds for Schools

Hinson Introduces EATS Act in U.S. House

Hinson Introduces EATS Act in U.S. House

Sign-Up For Our Daily Updates

Get The Iowa Torch right in your inbox!

Please wait...

Thank you for signing up!

Recommended Articles

Miller-Meeks: A Lasting Memory

March 21, 2022
Iowa’s 2nd Congressional District Heads Into a District-Wide Recount

Miller-Meeks Campaign Blasts Scott County’s Recount Process

November 23, 2020
Mohr Files Legislation Making Retirement Income Tax-Free in Iowa House

Mohr Files Legislation Making Retirement Income Tax-Free in Iowa House

January 25, 2022

Popular Stories

  • Schultz: Governor Highlights Successes in Western Iowa

    Reynolds to ask Iowa Courts to reconsider recent abortion rulings

    0 shares
    Share 0 Tweet 0
  • Iowa employers say attracting a quality workforce is a top priority

    0 shares
    Share 0 Tweet 0
  • Axne attacks Nunn in first campaign ad

    0 shares
    Share 0 Tweet 0
  • Several Republican incumbent lawmakers lose primaries

    0 shares
    Share 0 Tweet 0
  • Reynolds signs bill eliminating zoning restrictions for fireworks sales

    0 shares
    Share 0 Tweet 0

The Iowa Torch

The Iowa Torch​ is a for-profit, news organization that focuses on political news as it relates to Iowans

Categories

  • Education
  • Federal Government
  • Iowa History
  • Local Government
  • News
  • Opinion
  • Politics
  • State Government
  • Uncategorized
  • Uncategorized

Newsletter

Please wait...

Thank you for signing up!

© 2022 The Iowa Torch, a publication of 4:15 Communications, LLC.

No Result
View All Result
  • Home
  • About Us
  • Advertise
  • Contact Us
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion

© 2022 The Iowa Torch, a publication of 4:15 Communications, LLC.