Mr. Speaker, I rise in opposition to SB 788, SD2 HD2 CD1, relating to the Cigarette Stamp Tax.
I thank the Committee Chair for adding language to clearly exempt the the United States and its agencies and instrumentalities from this tax. However, the bill as drafted could still be interpreted to impose criminal penalties on those who buy cigarettes at a military base.
This act will make criminals of many of our constituents.
It makes possession of cigarettes without a tax stamp a crime.
Cigarettes sold at military exchanges and commissaries are not subject to our cigarette tax and will not have tax stamps.
Our constituents who are active duty or retired military personnel, including members of the Hawaii National Guard and Air National Guard, shop at the exchange and commissary - it is one of their valued benefits.
I proposed an amendment that would have clearly exempted persons who legitimately purchased cigarettes at military outlets from this act and from criminal prosecution.
That amendment is not incorporated in the Bill.
I urge my colleagues to defeat this bill and try again next session to focus our efforts on those who sell cigarettes without paying the tax rather than punishing those who lawfully buy tobacco on a military base.