Excise Taxes

National

Web cigarette sales burn hole in high state taxes
Because of a tax loophole, states are missing out on collecting cigarette taxes.  While internet cigarette retailers are not required by federal law to charge excise taxes, retailers generally ignore the fact that they are required to report their sales to the government.  Not only do these internet cigarette sales rob states of much-needed tax money, smokers who find they can save up to $20 per carton by buying cigarettes on the internet are even less likely to quit their habit.  Several states have been unsuccessful in billing smokers for taxes on their internet cigarette purchases; tougher federal tax laws would improve state tax collection rates.  Get more information here. 

Campaign set to raise cigarette tax
The American Lung Association of Kentucky has teamed with state representative David Watkins to propose a bill that would increase state excise taxes on cigarettes by up to 75 cents.  Kentucky has one of the lowest cigarette taxes at only 30 cents a pack, yet the tax increase is expected to encounter resistance in the state legislature, as the governor has stated in the past that he is against a cigarette tax increase.  Click here for more information about the push for Kentucky’s cigarette tax increase. 

S.C. considering cigarette tax hike, smoking bans
Although South Carolina currently has the lowest state cigarette tax in the U.S. at 7 cents a pack, the state is considering a thirty cent excise tax increase.  This will be the first tax increase in three decades—a major step for the tobacco-friendly state, which has the fourth largest tobacco harvest in the country.  The state is also considering a ban on smoking in restaurants.  Click here to learn more. 

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