Bill > HB1596

This bill raises the tobacco tax from $1.78 to $2.80 per pack of 20 cigarettes or little cigars, with a proportional rate for other package sizes, effective July 1, 2026. The bill also appropriates $18 million annually to the University System of New Hampshire, which is intended to restore higher education funding to 2024 budget levels. Additionally, the legislation repeals premium collection for two health care programs: the Children's Health Insurance Program (CHIP) and the New Hampshire Granite Advantage Health Care Program. The tobacco tax increase is expected to generate an estimated $83.9 million in additional revenue, with 61% going to the General Fund and 39% to the Education Trust Fund. The repeal of health care program premiums is projected to increase state expenditures by approximately $16 million annually ($11 million for CHIP and $5 million for the Granite Advantage program). The bill will have financial implications for the state, increasing both revenue through tobacco taxes and expenditures through university funding and health care program changes.

Budget and Finance

https://gc.nh.gov/bill_Status/billinfo.aspx?id=2154&inflect=2