Effective for sales, use, or possession of cigarettes by wholesalers or dealers after August 31, 1997, Act 331, Session Laws of Hawaii (SLH) 1997, increases the cigarette tax from three (3) cents per cigarette to four (4) cents per cigarette. This cigarette tax is further increased to five (5) cents per cigarette effective after June 30, 1998. The excise tax on tobacco products other than cigarettes remains at 40 percent of the wholesale price of the tobacco product.
RE: Increase in the Cigarette Tax Rates Under Chapter 245, Hawaii Revised Statutes
The Cigarette and Tobacco Products Monthly Tax Return (Form M-19) has been revised to incorporate the imposition of the new cigarette tax rate. The new Form M-19 (Rev. 1997) must be used to report sales, use, or possession of cigarettes and tobacco products after August 31, 1997 and through June 30, 1998. Form M-19 (Rev. 1996) must be used only to report sales, use, or possession of cigarettes and tobacco products before September 1, 1997. The Department will revise Form M-19 to incorporate the new five cent cigarette tax rate effective after June 30, 1998.
To request Form M-19 (Rev. 1997) or a copy of Act 331, SLH 1997, call the Department of Taxation, Taxpayer Services Branch, at 587-4242.
RAY K. KAMIKAWA
Director of Taxation