Treasury would need new staff to run proposed vaping, digital-ad and internet-gaming taxes, subcommittee told

The House General Government Subcommittee was told that implementing several taxes proposed by the governor would require new tax-administration staff at the Department of Treasury.

Michael Kassen summarized the Treasury items in the governor’s budget recommendation. He said implementation of a proposed tobacco/vaping/non‑tobacco nicotine-products tax would be associated with 17 new FTEs and about $2.4 million in general‑fund costs. Kassen said the governor also recommends five FTEs and roughly $2 million GF to implement a proposed digital advertising tax, and approximately four FTEs funded from restricted internet-gaming funds and about $600,000 restricted for administration of proposed internet gaming and sports betting taxes.

Committee members pressed for more detail about the staffing estimates. Rep. Snider and others asked why so many staff would be needed to administer what some described as increases to already‑taxed products. In one exchange a member cited a requirement for 10 FTEs specifically tied to tobacco-tax enforcement; Kassen said staff would follow up with Treasury to confirm details and the basis for enforcing and staffing levels.

Members also questioned policy details raised in the presentation. Rep. Kelly said she could not see the policy rationale for certain responsible-gaming proposals she perceived as targeted to youth; Kassen said his understanding was that the change was intended to target existing youth-gaming interventions toward responsible-gaming practices rather than to promote youth participation, and he agreed to follow up for more detail.

Kassen offered to get Treasury to provide more granular explanations of FTE needs and cost drivers for each proposed tax so the subcommittee can review enforcement assumptions and implementation timelines.