Cigarette Tar Tax Act

Summary

Cigarette Tar Tax Act - Provides for taxing cigarettes under the Internal Revenue Code on the basis of their tar content, with those having the higher tar and nicotine content being taxed at a higher rate. Directs the Federal Trade Commission to test tar and nicotine levels of all brands at least once every quarter. Establishes in the Treasury of the United States a special fund to be known as the Tobacco Tax Fund. Provides that such fund shall be available only, as provided by appropriation Acts, to carry out programs hereafter established by law to provide adjustment assistance for growers of tobacco products, State and local governments, and other persons incurring serious economic hardship resulting from the elimination or substantial reduction of the use of cigarettes, cigars, and other tobacco products. Provides for the establishment of the Commission on Tobacco Adjustment Assistance. Provides that it shall be the function of the Commission to study: (1) the probable effect of this tax and the termination of price supports for tobacco will have in achieving the elimination or substantial reduction of the use of cigarettes, cigars, and other tobacco products; (2) the economic hardship that will result from the elimination or substantial reduction of the use of such tobacco products; and (3) the economic hardship to State and local governments caused by the reduction in revenue resulting from the elimination or substantial reduction in the use of such tobacco products. Provides that the Commission shall report to the President and to Congress its findings and recommendations within 18 months. Authorizes appropriations of $1,000,000 for each fiscal year to carry out this Act. Provides for adjustments of price supports on tobacco for 1974, 1975, and 1976: (1) the 1974 crop at no more than 75 percent of the 1970 support; (2) the 1975 crop at no more than 50 percent of the 1970 support; and (3) the 1976 crop at no more that 25 percent of the 1970 support. Provides that the tobacco price support shall be discontinued in 1977 and thereafter. Provides for discontinuance of subsidies for the export of tobacco. Provides that marketing quotas, marketing penalties, acreage-poundage quotas, and acreage allotments for tobacco shall be ineffective with respect to the 1977 and subsequent crops of tobacco.

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1 official file

• Introduced in Senate

  summary · EN · 18 January 1973

  Open at official source

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