Iowa will get $52.9 million in tobacco cash | Political Information

DES MOINES – Iowa Attorney General Tom Miller said Iowa’s share in the landmark 1998 settlement with U.S. tobacco companies exceeded $ 1.36 billion on Friday.

Officials in Miller’s office say the Iowa Department of the Treasury received approximately $ 52.9 million in annual remittance payments from tobacco companies involved in the multistate Master Settlement Agreement – the largest settlement in US history.

Iowa will continue to receive annual billing payments based on the number of cigarettes sold in the US on an ongoing basis. Over the past 22 years, Iowa has received more than $ 1.36 billion in payments.

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“This settlement is nearly a quarter of a century old, but our office must carefully monitor and enforce the terms of the agreement each year so that Iowa gets its fair share of the settlement,” Miller said in a statement.

About $ 11.6 million of this year’s payment – or 22% – goes to the state, according to the AG’s office. The remaining 78% will be used primarily to pay bondholders who have purchased bonds issued by the Tobacco Settlement Authority.

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State Treasurer Michael Fitzgerald announced Wednesday that Iowa had refinanced its tobacco billing bonds this month, saving the state more than $ 167 million over the life of the bonds.

In 1998, Miller and attorneys general from 45 states signed an agreement with the country’s four largest tobacco companies to settle lawsuits and reimburse billions in government health care costs associated with treating smoking-related diseases.

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