OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

HB-5384

AN ACT RAISING THE LEGAL AGE FOR PURCHASE AND USE OF TOBACCO PRODUCTS.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 18 $

FY 19 $

Department of Revenue Services

GF - Revenue Loss

14.3 million

33.3 million

Resources of the General Fund

GF - Potential Revenue Gain

Less than 75,000

Less than 75,000

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill raises, from 18 to 21, the legal age to purchase or possess tobacco products in the state. This results in an estimated cigarette and tobacco tax revenue loss of $14.3 million in FY 18 and $33.3 million in FY 19, and a potential increase in penalty revenue of less than $75,000 annually beginning in FY 18.

The bill results in potential increased revenue from fines from the purchase or sale of tobacco products by persons aged 18 to 20. In FY 16, there were 39 offenses for the purchase of tobacco products by a person under 18 with fines totaling $2,235. There were 308 offenses of sale of tobacco products to a person under 18 with fines totaling $62,855. Based on current penalties, it is estimated that the bill will results in increased penalties of less than $75,000.

The estimated revenue loss is based on state population data and information from the Centers for Disease Control and Prevention indicating that approximately 5.4% of Connecticut residents aged 18 to 20 smoke; it is assumed that this population would cease smoking under the bill's provisions. The fully annualized revenue loss is estimated to be approximately $42.3 million based on information from the Institute of Medicine indicating that raising the legal smoking age to 21 decreases smoking rates by approximately 12% over time.

The Out Years

State Impact:

Agency Affected

Fund-Effect

FY 20 $

FY 21 $

FY 22 $

Department of Revenue Services

GF - Revenue Loss

42.3 million

42.3 million

42.3 million

Resources of the General Fund

GF - Potential Revenue Gain

Less than 75,000

Less than 75,000

Less than 75,000

Note: GF=General Fund

Municipal Impact: None

Sources:

Centers for Disease Control and Prevention

 

Institute of Medicine of the National Academies: Public Health Implications of Raising the Minimum Age of Legal Access to Tobacco Products, 3/15

 

Judicial Department Offenses and Revenue Database