Excise Taxes

National

New York cigarette tax increase delivers victory for kids and taxpayers (NY)
New York's leaders have taken historic action to protect the state's kids and taxpayers from the devastating toll of tobacco use by increasing the state cigarette tax by $1.25 to $2.75 per pack. This is the single largest state cigarette tax increase ever enacted and gives New York the highest state cigarette tax in the nation. Click here to read the full statement issued by William V. Corr, Executive Director, Campaign for Tobacco-Free Kids.

Cigarette tax increase credited with drop in sales (IA)
A $1 increase in Iowa’s cigarette tax has led to both a decrease in the amount of cigarettes sold and an increase in state revenues in the past year.  Since the state tax increase last March, cigarette sales are down 36%, according to the Iowa Department of Revenue.  This good news was released just prior to a second antismoking victory for Iowa this month--the state’s passage of a public smoking ban. Click here to read more.

House lawmakers give initial approval to tax package (MA)
The Massachusetts House has passed a new tax law that, if passed in the Senate, will increase the state cigarette tax by a dollar in July.  According to Senate President Therese Murray, there is strong support in the Senate for a tax increase.  The proposed tax increase would bring in an estimated $75 million in additional revenue for the state.  However, opponents of the tax fear that rather than decreasing smoking, a tax increase might drive smokers into bordering New Hampshire to buy cheaper cigarettes. Read more here.

States look to tobacco tax for budget holes
Many states, including New York and Massachusetts, are currently considering cigarette tax increases.  Raising cigarette taxes is not only a profitable move for state governments, but it is also a research-proven method for decreasing smoking rates, particularly among youths.  However, tobacco companies cite research that cigarette taxes are an inconsistent source of tax dollars since cigarette sales tend to decline as cigarette costs rise.  The tobacco lobby also argues that smokers bear an unfair tax burden.  With heavy anti-tax advertising, tobacco companies have squelched recent efforts to raise cigarette taxes to fund health programs in California and Oregon.  Heavy debate is expected in the coming weeks in South Carolina, where the Senate will consider the state’s first cigarette tax increase in 31 years. Click here to learn more.

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