States

Alaska:
 
Lawsuit filed against tax in Alaska’s Matanuska-Susitna Borough
Opponents have filed a lawsuit against the $1-a-pack tax passed in Matanuska-Susitna Borough, stating that borough voters should have to approve the tax before it is enacted. Alaska law allows boroughs and cities to collect property, sales and use taxes, but does not specifically address excise taxes. The tax, imposed on the sale of all tobacco products, took effect in July. Click for more information on the suit.

California:
 
Compromise measure proposed in disagreement over tobacco tax initiative in California
Two groups had proposed different measures that would increase the tax on tobacco in California. The California Hospital Association, under the proposed Emergency Services and Tobacco Tax Act of 2006, was seeking to impose a $1.50 tax on cigarettes to offset hospitals' costs for providing emergency-room care. Anti-smoking groups such as the American Lung Association and the American Cancer Society had proposed a competing $1.50 tobacco-tax measure in order to use the money to provide health insurance for all uninsured children in California and to pay for tobacco-control programs. Their initiative was supported by the California Nurses Association, which had stated that the hospital association’s measure was deceptive and would not resolve the state’s healthcare crisis. A compromise has been proposed that would increase cigarette taxes by $2.60 a pack and would generate about $2.3 billion in revenue for a range of health programs, including hospital emergency services, children's health insurance and cancer research. With the new tax, California's cigarette tax would total $3.47 per pack, the highest in the nation. Click for more information.

Illinois:
 
Cook County, Illinois considering raising cigarette tax
Cook County commissioners are considering a $2 per pack tax on cigarettes. Raising the tax will bring the total taxes on a pack of cigarettes to $4.05, which would include federal, state, and local taxes. Click for more information. (Registration required).

Iowa:
 
University student presidents in Iowa support tobacco tax increase
Student government presidents at the University of Iowa, Iowa State University and the University of Northern Iowa plan to push for a tobacco tax increase in 2006 in order to deter youth from smoking. Click for more information.

Kentucky:
 
Kentucky governor considering raising cigarette tax again
Governor Fletcher would like to see another cigarette tax increase of about 13 cents per pack of cigarettes. Recognizing that smoking is a cultural tradition in the state of Kentucky, he is weighing his support. Click for more information.

Missouri:
 
Rival cigarette taxes proposed in Missouri
Missouri voters are facing the possibility of competing tobacco tax initiatives in November 2006. Hospitals, health-care companies and anti-smoking groups have proposed an $0.80 per pack cigarette tax increase to fund tobacco prevention programs, treat smoking-related and chronic diseases among the poor, and to increase Medicaid fees to doctors, hospitals, and health care organizations. Missouri Alliance for Health and Justice, a coalition of advocates for the poor, is considering a separate ballot initiative for an $0.80 per pack cigarette tax increase to restore Medicaid cuts made during the last legislative session and to fund tobacco prevention programs. Click for more information.

New York:
 
Adult smoking in New York experiences significant decrease due to high taxes
According to a report by the Campaign for Tobacco-Free Kids, the percentage of
New Yorkers over the age of 18 who smoke dropped from 20.8% to 18.1% from 2003 to 2004. Smoking among high school students has decreased from 27% in 2000 to 18.5% in 2004. Despite the fact that the state spent less than 3% of the $1.7 billion collected from tobacco taxes and a 1998 settlement with tobacco companies on anti-smoking programming, the reduction is credited to programming such as smokefree workplace legislation, cigarette taxes, free nicotine patches, and a tobacco quit line. Click for more information.
 
One-third of smokers in NY avoid cigarette tax
A study examining tax evasion in New York determined that more than 1/3 of smokers in the state avoid paying cigarette taxes by buying from American Indian reservations, the Internet, or duty-free shops. The state increased the excise tax from $1.11 to $1.50 per pack in 2002. Click for more information.
 
New York reaches agreement with cigarette tax stamping agent
Harold Levinson Associates, one of New York’s largest cigarette tax stamping agents, has agreed to stop supplying unstamped cigarettes to companies that re-sell them illegally via the Internet or mail order. Attorney General Eliot Spitzer indicated that the he intends to ask all licensed stamping agents within the state to sign similar agreements. Click for more information.

Oklahoma:
 
Oklahoma tax helps smokers quit
Although the new tax in Oklahoma is not meeting revenue projections, it has been credited with motivating 30,000 residents to quit smoking. Click for more information.

Oregon:
 
Tobacco tax increase proposed in Oregon
Rep. Billy Dalto (R) and lawmakers in Oregon have submitted a proposed measure for the November 2006 ballot to increase the state cigarette tax by 60 cents in order to expand health care for the poor. The increase would result in a tax of $1.78 per pack, one of the highest in the nation. Click for more information on the initiative.

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