Iowa’s share in the landmark 1998 deal with U.S. tobacco companies has now exceeded $ 1.36 billion.
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.
“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.
Around $ 11.6 million of this year’s payment – or 22 percent – will go to the state, according to the AG’s office. The remaining 78 percent will be used primarily to pay bondholders who have purchased bonds issued by the Tobacco Settlement Authority.
State Treasurer Michael Fitzgerald announced Wednesday that Iowa had repaid its tobacco billing bonds this month, resulting in savings of more than $ 167 million for the state over the life of the bonds.