Excise Taxes

National

Cigarette taxes and youth smoking
Researchers utilized data from a variety of 1991 to 2005 Youth Risk Behavior Surveys, including state and local versions, to assess the smoking behavior of approximately 750,000 youths. Controlling for demographic information, the tax increases were significantly associated with reductions in smoking participation and frequent smoking by young people. To view the abstract, click here.

Indiana: Governor signs new healthcare legislation
Governor Mitch Daniels signed into law legislation that will raise the state cigarette tax by 44 cents a pack to provide insurance for the uninsured. Thirty-three cents will go towards child immunizations, coverage for the uninsured, assistance to enable small businesses to provide insurance coverage, and a smoking cessation program. The remaining tax revenue will increase reimbursement rates for Medicare providers and other health-related initiatives. Click here to read more.

South Carolina: Senate committee approves 45-cent increase, healthcare trust fund
The full South Carolina Senate will consider a bill that that would raise the sales tax on a pack of cigarettes to 52 cents, eliminate income tax for the state’s poorest earning bracket and create a $90 million health-care trust fund. Five million from this fund would be spent on a smoking cessation program. To read more, click here.

Mississippi: Barbour might be open to cigarette tax hike next term
If re-elected, Governor Haley Barbour will consider increasing the state tax on a pack of cigarettes from 18 cents to $1 a pack as long as taxes are reduced overall for Mississippians. The cigarette tax increase would be accompanied by a reduction in the state’s seven percent grocery tax, which would create a small source of revenue for the state. To read more, click here.

Tobacco taxes up, sales down in South Dakota
After raising the state tax on cigarettes to $1.53 cents a pack on January 1st, cigarette sales have dropped dramatically. While 11.1 million packs were sold in the first-quarter of 2006, only 7.2 million packs were sold in the first-quarter of 2007. At the same time, revenue from cigarette taxes more than doubled. Click here to read more.

Tennessee: Bredesen’s cigarette tax hike advances, but not after being trimmed
The Tennessee Finance, Ways and Means Committee has approved a 20-cent increase in the cigarette sales tax. This increase would double the current tax from 20 cents to 40 cents per pack, but is still lower than Gov. Bredesen’s desired 60-cents per pack tax. If approved by the legislature, the revenue would help overhaul the state’s education system. Click here to read more.

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International

Britain: Chancellor may cut tax on nicotine patch
In an effort to facilitate cessation and discourage cigarette smuggling due to an increase in the cigarette tax, Britain’s Chancellor is considering cutting the tax on nicotine patches. The Department of Health hopes to decrease the percentage of adults smoking from 25% to 21% by 2010. Click here to read more.

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