States

Delaware: Despite Delaware’s budget surplus this year, Governor Ruth Ann Minner has proposed a 19 cent tax increase on cigarettes. This would bring the state’s total tax on cigarettes to $0.74 per pack.

Idaho: The Idaho House of Representatives passed legislation that would maintain the current cigarette tax at $.57 per pack, instead of decreasing it to $0.28 as planned in accordance with the 2003 law that initially posed the increase to $.57. The bill passed by the House extends the 57 cent rate through July 2007; however, the Senate could amend this bill to make the rate permanent.

Iowa: Governor Thomas Vilsack supports an $0.80 cigarette tax increase in order to provide for education and health care budget needs in the state.

Kentucky: As of June 1, 2005 the tax on cigarettes in Kentucky will increase by $0.27 and on August 1st, a 7.5% tax will be implemented on all other tobacco products. Governor Ernie Fletcher signed the tax bill on March 18th. The first tobacco tax increase since 1970, this brings the overall tobacco tax to $0.30 per pack. The hike will change Kentucky’s standing as the state with the lowest tax rate, leaving North Carolina at the bottom. Research has found that for every 10% increase in the price of cigarettes, smoking rates diminish by 4% and youth smoking rates decrease by about 7%. More information on tax increases and Kentucky can be found at:
http://tobaccofreekids.org/Script/DisplayPressRelease.php3?Display=822

Louisiana: Governor Kathleen Blanco may propose that Louisiana’s cigarette tax double, putting it at $0.72 per pack. The money would be used for teacher pay raises.

Maine: The Maine Coalition on Smoking and Health requested the legislature to increase the $1.00 per pack tax to $2.50 per pack and to use the additional funds for health purposes.

North Carolina: Governor Michael Easley’s budget proposal includes a cigarette tax increase of $0.35 in 2005 and a $0.10 increase in 2006. These changes would raise the current 5 cent tax to $0.50.

Virginia: On July 1st, the Virginia’s tax on cigarettes will increase by 10 cents, putting it at $0.30 per pack.

Washington: Governor Christine Gregoire proposed a 20 cent increase in the state’s cigarette tax as part of her state budget, which would result in a total tax of $1.625 per pack. The Senate proposed a two-year budget that included a 60 cent increase in the current cigarette tax and a 20 cent increase in two years.

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