Effective for the sale, use, and possession of cigarettes, as defined in chapter 245, Hawaii Revised Statutes, by wholesalers or dealers beginning July 1, 1998, and thereafter, the cigarette tax is increased from four cents per cigarette to five cents per cigarette. The excise tax on tobacco products other than cigarettes remains at forty per cent (40%) of the wholesale price of the tobacco product.

The Department of Taxation will be preparing a revised Form M-19 (Rev. 1998) providing for the new cigarette tax rate. The new tax rate is effective beginning July 1, 1998, and the tax due must be reported on the new Form M-19 (Rev. 1998) beginning August 1998.

Form M-19 (Rev. 1997) must be used only to report the sale, use, or possession of cigarettes and tobacco products after August 31, 1997 through June 30, 1998.
 

/s/
RAY K. KAMIKAWA
Director of Taxation