BILL ANALYSIS Ó
AB 2184
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Date of Hearing: April 18, 2016
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Sebastian Ridley-Thomas, Chair
AB 2184
(Low) - As Amended April 6, 2016
Majority vote. Fiscal committee.
SUBJECT: Cigarette tax: stamps and meter machines: report
SUMMARY: Modifies the statutory provisions requiring the State
Board of Equalization (BOE) to submit a report to the
Legislature evaluating the average actual costs associated with
applying stamps or meter impressions to cigarette packages.
Specifically, this bill:
1)Requires the BOE, no later than January 1, 2018, to submit a
report to the Legislature evaluating the average actual costs
associated with applying stamps or meter impressions to
cigarette packages.
2)Provides that this report shall be submitted in compliance
with Government Code Section 9795.
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3)Provides that, notwithstanding Government Code Section
10231.5, the report shall be updated and submitted to the
Legislature every two years.
EXISTING LAW:
1)Provides that no later than July 1, 2005, the BOE must submit
a report to the Legislature evaluating the average actual
costs associated with applying stamps or meter impressions to
cigarette packages.
2)Requires this report to be updated every two years.
FISCAL EFFECT: Unknown
COMMENTS:
1)Committee Staff Comments:
a) General background : Existing law imposes a tax, under
the Cigarette and Tobacco Products Tax Law, on cigarette
distributors at the rate of $0.87 per package of 20
cigarettes. The law requires the cigarette tax be paid
through the use of stamps or meter impressions.
Specifically, these stamps or meter impressions must be
affixed to each package of cigarettes distributed.
Existing law also requires the BOE to report to the
Legislature on the costs associated with applying these
stamps or meter impressions. The original report was due
to the Legislature by July 1, 2005, and the law calls for
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this report to be updated every two years. The report
examines costs ranging from labor to costs associated with
the leasing of stamping equipment.
b) This bill : This bill would call for the report to be
issued to the Legislature no later than January 1, 2018.
The report would, thereafter, be updated and submitted to
the Legislature every two years. This bill also requires
the report to be submitted in compliance with Government
Code Section 9795. Section 9795, in turn, sets forth
standards for reports submitted to the Legislature by state
or local agencies. Any such report must be submitted as a
printed copy to the Secretary of the Senate, as an
electronic copy to the Chief Clerk of the Assembly, and as
an electronic or printed copy to the Legislative Counsel.
Moreover, each report must include a summary of its
contents, not to exceed one page in length.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
AB 2184
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Analysis Prepared by:M. David Ruff / REV. & TAX. / (916)
319-2098