House & Senate reach compromise on cigarette tax

cigarettes

The House and Senate reached a compromise on the portion of the excise tax on cigarettes, cigars and tobacco that will go to the American Samoa Community College.

The compromise is that 11% of the 50% of the cigarette tax going into the General Fund will be earmarked for ASCC.

In its original form the administration bill proposed a 3 cent hike to the tax on cigarettes, cigars and tobacco, up from 30 cents per cigarette or cigar and 10 grams of tobacco.

The bill proposed that of the 50% portion of the tax going into the General Fund, 9 percent would be earmarked for the college.

The other 50% is already assigned to pay the American Samoa Economic Development Authority bonds.

The House of Representatives passed the bill as it was submitted.

But Senators changed the bill to increase the portion for ASCC from to 15%.

This morning a conference committee was held with all of the representatives and senators attending.

Each side argued strongly on the reasons why their versions should be approved.

In the end a compromise was struck. Instead of 9 or 15 percent, the lawmakers agreed to 11% of the cigarette excise tax going to the college.

The Senate has approved the amendment and the House will approve the change tomorrow, the final day of the Fourth Regular Session.