Excise Taxes

Research

Cigarette prices influence smoking among young adults
A Canadian study has found that decreases in the price of cigarettes increase the likelihood that young adults ages 20-24 will start smoking. Click here for more information.

top

Resources

Factsheet on tax stamp technology
A fact sheet on high tech tax stamp technology is available from the Campaign for Tobacco-Free Kids.

SLATI contains list of state cigarette excise taxes
Go to the SLATI website to view a list of state cigarette excise tax rates as of June 1, 2006.

top

States

California:

Over one million signatures filed for tax initiative in California
Supports of a ballot initiative to increase the tax on cigarettes in California have filed over one million signatures. The initiative would increase the cigarette tax by $2.60 per pack to $3.47 per pack, providing critical funding to prevent smoking, especially among children, and to address other health care priorities. View the press release for more information.

Delaware:

Delaware governor attempts to raise cigarette tax again
Last year, Delaware Governor Ruth Ann Minner was able to get lawmakers to make permanent the 2003 tax increase of 31 cents a pack for a total of 74 cents a pack. This year, she is attempting to raise the tax by an additional 19 cents per pack. To learn more, click here.

Hawaii:

Hawaii passes cigarette tax increase
On the last day of its legislative session, Hawaii passed a $1.20 increase in its cigarette tax, which will go into effect in 20 cent increments over the next six years, starting in September 2006. The total tax per pack of cigarettes will be $2.60. However, because of errors made by state lawmakers, the extra proceeds will go into the state treasury rather than the intended fund for cancer research and other related health services. For more information, click here.

Iowa:

Iowa continues fight for high cigarette tax
With a change in leadership at the state Capitol in Iowa, supporters of a higher tobacco tax are hoping a 36 cent tax increase per pack will be approved. Click here for additional information.

Kentucky:

Kentucky governor approves tax increase on cigarette papers
Governor Ernie Fletcher of Kentucky has approved a tax increase on cigarette papers, raising the price of a pack of 34 papers by 25 cents. Currently, a pack of papers cost $1.49. For more information, click here.

Maryland:

Candidate for governor calls for increase in cigarette tax
Douglas M. Duncan, seeking the Democratic nomination for governor of Maryland, is advocating for a $1 increase in the state cigarette tax to $2 per pack to provide more than $200 million in health-related funding. For more information, click here.

Massachusetts:

Massachusetts Department of Revenue sending tax bills to Internet cigarette buyers
A tax bill by the Massachusetts Department of Revenue will be sent to 1,800 individuals who bought cigarettes on the Internet and did not pay an excise tax on their purchases. Payment to the state totals $2 million, or about $1,100 per smoker. Several Internet vendors have been providing the state with the names of their Massachusetts customers and their purchase data. Click here for more information.

Missouri:

Signatures filed for ballot initiative in Missouri
Approximately 238,000 signatures have been turned in to support a ballot initiative to raise the cigarette tax in Missouri by $0.80 to $0.97 per pack. About $61 million of the new revenue would be directed toward tobacco prevention programs. Click here for more information.

New York:

Philip Morris and RJ Reynolds support measure to end tax-free cigarette sales
Philip Morris and RJ Reynolds are now supporting a measure that would make it illegal for them to do business with wholesalers that sell tax-free cigarettes to Indian retailers. For more information, click here.

New Jersey:

Analysis of quantitative impact of New Jersey’s cigarette tax released
Demand for cigarettes decreased by 47.1% in New Jersey from 1998-2005, compared to 17.9% nationally. Much of the cause for this decrease, approximately 60% in fact, is likely the state’s increasing cigarette tax, which has gone up by 500% since 1998. Click here to learn more about a report released analyzing the quantitative impact of New Jersey’s increasing cigarette tax rate.

Oregon:

Proposal to increase excise tax in Oregon dropped
A proposal to increase Oregon’s cigarette excise tax by $0.60 per pack has been dropped because there is not enough time to gather the over 75,000 signatures required by a July 7th deadline. Funds from the increase would have gone to pay for the state’s children’s health insurance plan. Click here fore more information

Oregon going after more internet cigarette purchasers
A legislative subcommittee has given the Oregon Department of Revenue permission to spend additional funds to seek out smokers who bought cigarettes online without paying the state’s tax of $1.18 per pack. The state will send out tax bills in response to an additional 23,000 invoices. Click here for more information.

South Carolina:

Proposal to raise tax in South Carolina defeated
In South Carolina, the state with the lowest cigarette tax rate in the country, an amendment to a larger tax bill to increase the tax by $0.30 this year and by $0.05 the next two years was defeated. Click here for additional information.

South Dakota:

Tobacco tax bill to be on upcoming South Dakota ballot
A total of 25,000 signatures were delivered to the South Dakota Capitol in support of a ballot measure to triple the state tax on cigarettes, with a $1 increase. Because of grass roots efforts originated by the American Heart Association, more than enough signatures were collected. For more information, click here.

Texas:

Texas tobacco tax increased by $1
The Texas State Legislature has signed a bill increasing the tax on tobacco by $1, to a total of $1.41 per pack. The tax increase is a part of Governor Rick Perry’s proposal to overhaul the state’s school finance system, and will take effect on September 1st. The tax will generate almost $700 million in the first year alone. Click here to view a press release from the Campaign for Tobacco-Free Kids.

Vermont:

Vermont enacts cigarette tax increase
Vermont Governor James Douglas has signed a bill that includes an $0.80 increase in the cigarette tax over two years. Under the new law, which is intended to provide health insurance for the uninsured, the cigarette tax will increase by $0.60 to $1.79 per pack on July 1, 2006 and by an additional $0.20 to $1.99 per pack July 1, 2007. The tax on other tobacco products will also increase, but changes to a weight-based formula. Click here to view a press release from the Campaign for Tobacco-Free Kids.

Wisconsin:

Wisconsin ceases pursuit of back taxes from Internet purchasers
Wisconsin Governor Jim Doyle is not seeking $3 million in back taxes from state residents who purchased cigarettes online. Doyle requested that the Department of Revenue cease its efforts after receiving complaints from residents on fixed incomes who had made online purchases but were not aware that they owed taxes. Wisconsin tax officials hope to change state law to require Internet vendors, rather than individuals, to pay any taxes to the state, which would require a change in federal law because it would impact out-of-state retailers. Click here for additional information.

top

Back to Table of Contents