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HF 2796

A bill for an act increasing the tax on cigarettes.

2025-2026 Regular Session Introduced by Ken Croken

HF 2796 would raise Iowa's cigarette excise tax to increase state revenue, changing per-pack prices and relying on the appropriate agency for collection and enforcement.

Introduced, referred to Ways and Means.
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Bill Summary · HF 2796

Summary of HF 2796 (Session: 2025-2026) – Iowa

Overview

HF 2796 proposes increasing the state tax on cigarettes. The bill was introduced and referred to the Ways and Means committee on April 30, 2026. Co-sponsor: Ken Croken.

Purpose and Intent

  • The primary aim is to raise revenue by increasing the excise tax on cigarettes sold in Iowa.
  • The measure is positioned within the framework of how state tax policy may impact public revenue and potential public health considerations tied to tobacco use.

Key Provisions (Proposed Changes)

  • Increase in cigarette tax: The bill specifies a higher per-pack tax on cigarettes compared to current law. The exact per-pack amount and any phased-in schedule or exceptions (e.g., price-tiered changes, consumer exemptions, or transitional provisions) are not detailed in the summary provided.
  • Effective date: The bill would take effect on a specified date after enactment (not stated in the available information). Often, tax increases include a phased implementation or a firm effective date; the text would clarify this.
  • Administration and collection: The bill would assign responsibility to the appropriate state department (commonly the Department of Revenue or another tax administration agency) for collection, enforcement, and any required reporting or oversight related to the tobacco tax increase.
  • Related provisions: There may be ancillary provisions such as adjustments to related tobacco product taxes, minimum funding allocations tied to revenue, or conforming amendments to Iowa code sections impacted by the increase. The summary does not specify these details.

Who Would Be Affected

  • Retailers and distributors: Businesses that sell cigarettes in Iowa would see changes in the tax calculation at the point of sale, affecting pricing, reporting, and remittance.
  • Consumers: Smokers and purchasers of cigarettes would be subject to higher per-pack prices.
  • Public health and budgeting: The state would potentially realize increased tobacco tax revenue which could influence state budgeting or earmarked programs (if the bill directs funds to specific uses).

Procedural and Timeline Considerations

  • Status: Introduced and referred to the Ways and Means committee on April 30, 2026.
  • Next steps: If reported favorably by Ways and Means, the bill would move to the full House for debate and votes, followed by potential consideration in the Senate and subsequent gubernatorial action.
  • Fiscal impact: The bill’s revenue impact would be assessed during committee analyses and fiscal notes, including any projected annual revenue increase and potential economic effects (e.g., cross-border shopping, illicit trade considerations).

Notes

  • The available information does not include the exact per-pack tax rate, any staged implementation, or earmarked uses for additional revenue.
  • For a complete understanding, the bill text and fiscal note would provide precise figures, effective dates, and any accompanying policy provisions.

If you’d like, I can incorporate the full bill text or a fiscal note to produce a more detailed, line-by-line summary of the exact provisions and financial impact.

Compiled from official sources — confirm details with the bill’s official record.

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