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Bill

S 2020

Creates a series of distinctive license plates for law enforcement officers who were wounded in the line of duty

2025 Regular Session Introduced by Mark Walczyk

The bill raises cigarette taxes and taxes cigars/tobacco to cut youth nicotine use, boosting state revenue and potentially reducing demand.

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Bill Summary · S 2020

Summary — S.2020 (Massachusetts) — “An Act protecting youth from nicotine addiction by increasing the tax on cigarettes”

Note on source material: the bill text and docket provided are for Massachusetts Senate Bill No. 2020 (filed 1/15/2025 and presented by Sen. John F. Keenan and others). Some of the supplied metadata (title about license plates; sponsors Marsha Blackburn and Mark Walczyk) appears inconsistent with the bill text. This summary is based on the Massachusetts bill text included in the packet.

Purpose

The bill increases excise taxes on cigarettes, cigars, and smoking tobacco with the stated intent of protecting youth from nicotine addiction. It raises per‑cigarette excise rates, changes how cigars and smoking tobacco are taxed, and imposes a one‑time supplemental charge on existing inventories that were previously taxed at a lower rate.

Key provisions

  • Cigarette excise (amendment to G.L. c.64C, §6):

    • Imposes an excise equal to 200.5 mills per cigarette (0.2005 dollars per cigarette) plus any amount necessary to bring the federal excise component up to 8 mills if the federal rate is lower.
    • Practical example: 200.5 mills per cigarette equals $0.2005; for a standard 20‑cigarette pack this is about $4.01 in excise tax per pack.

  • Cigar and smoking tobacco excise (amendment to G.L. c.64C, §7B):

    • Imposes an excise equal to 80% of the wholesale price on cigars and smoking tobacco.
    • Tax is assessed on distributors when the products are manufactured, purchased, imported, received, or acquired in the Commonwealth.
    • Exempts products exported from Massachusetts or otherwise exempt under federal law.

  • Transitional/one‑time inventory adjustment (Section 3):

    • Businesses (manufacturers, wholesalers, vending operators, unclassified acquirers, retailers, and authorized stampers) that, 7 days after the act’s effective date, have cigarettes or unused adhesive/encrypted stamps on hand must:
    • File a sworn inventory return within 21 days.
    • Pay an additional excise of 50 mills per cigarette ($0.05 per cigarette, or $1.00 per 20‑pack) on cigarettes and unused stamps that previously had only 150.5 mills paid.
    • The assessment, collection, penalties, and administration follow the existing tax statutes (G.L. chs. 62C and 64C).

  • Administration and enforcement:

    • The Commissioner may require reports from carriers, warehousemen, bailees and examine records related to shipment and receipt of cigarettes.
    • Standard tax enforcement provisions (penalties, verification, abatement) apply.

Who would be affected

  • Directly: cigarette and tobacco manufacturers, distributors, wholesalers, retailers, vending operators, unclassified acquirers, and state‑appointed stampers.
  • Indirectly: consumers (higher retail prices), public health programs (potential reduction in youth smoking), and state revenues (expected increase).
  • Potential secondary effects: cross‑border purchases, illicit/tax‑avoidance activity, and changes in demand for alternative nicotine products.

Timeline / procedural notes

  • Filed: 1/15/2025 (Senate Docket No. 952).
  • Presented in the Senate by Sen. John F. Keenan (and co‑petitioners listed in the text).
  • Legislative actions in provided materials show referral activity and a hearing scheduled for 09/29/2025. The bill status in the packet includes referrals to various committees (Revenue; Commerce, Science & Transportation; Transportation) — committee referrals and hearing dates should be confirmed with the official legislative calendar for final scheduling.

Fiscal and policy implications (summary)

  • Significant per‑pack excise increase: +$4.01 per 20‑pack from the new base excise (plus a one‑time transitional +$1.00 per 20‑pack on current inventory taxed at the prior rate).
  • Likely increase in state excise revenue, depending on tax pass‑through and consumption elasticity.
  • Intented public health benefit: reduce youth initiation and nicotine addiction through higher retail prices.
  • Possible unintended consequences: increased cross‑state purchasing, smuggling, or substitution to untaxed/less‑taxed products.

Related / replacement measures

  • Replaces SD 952 (per packet), related to prior session S.8442, companion House bill(s) A4321.

If you want, I can:
- Produce an estimated revenue impact given baseline consumption figures, or
- Draft a short one‑page memo highlighting pros/cons for a committee hearing.

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

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