Whereas, an increase in the cigarette tax is needed to provide revenue to stabilize the MaineCare program by October 15, 2005; and

Whereas, increasing the cigarette tax by October 15, 2005 can be accomplished only if this Act takes effect upon approval; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

PART A

Sec. A-1. 36 MRSA §4365, as amended by PL 2003, c. 705, §6, is further amended to read:

§4365. Rate of tax

A tax is imposed on all cigarettes imported into this State or held in this State by any person for sale at the rate of 47 97 mills for each cigarette. Payment of the tax is evidenced by the affixing of stamps to the packages containing the cigarettes.

Sec. A-2. 36 MRSA §4365-E, as enacted by PL 2001, c. 439, Pt. SSSS, §2, is repealed.

Sec. A-3. 36 MRSA §4365-F is enacted to read:

§4365-F.__Application of cigarette tax rate increase effective

October 15, 2005

The following provisions apply to cigarettes held for resale on October 15, 2005.

1.__Stamped rate.__Cigarettes stamped at the rate of 47 mills per cigarette and held for resale after October 14, 2005 are subject to tax at the rate of 97 mills per cigarette.

2.__Liability.__A person possessing cigarettes for resale is liable for the difference between the tax rate of 97 mills per cigarette and the tax rate of 47 mills per cigarette in effect