Cigarettes for military personnel

From the 2024 DOR Tax Exemption Study

82.24.260(1)(b); 82.24.290 - Cigarettes for military personnel Description The cigarette tax does not apply to cigarettes sold to the U.S. Veterans’ Administration, to branches of the U.S. armed forces at exchanges, commissaries, or ships’ stores; or to authorized purchasers from these federal instrumentalities. Also, a federal instrumentality selling unstamped cigarettes to authorized military personnel is exempt from cigarette tax. Purpose Federal legislation, the Buck Act (4 U.S.C.§ 107), implicitly prohibits states from imposing a cigarette tax upon military members and their dependents. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.900 $0.900 $0.900 $0.900 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would not increase revenues because federal law exemption prohibits states from taxing tobacco products purchased by military members and their dependents. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions Repeal causes no revenue impact because federal law prohibits states from taxing t