Excise Taxes

Research

Cigarette purchases decrease (OK)
According to a survey by Oklahoma State University, a cigarette tax increase in 2005 from 23 cents to $1.03 caused a considerable decrease in cigarette sales. Sales decreased from 356 million packs in fiscal year 2004 to 309 packs in 2006—a 47 million decrease. The survey showed that 35% of smokers acknowledged the tax increase as a factor involved in their decision to quit, and those with lower incomes were most affected by the tax. Another encouraging finding was that the number of middle school students who smoked or experimented with smoking dropped from 2002 to 2007—evidence that the tax prevented Oklahomans from starting to smoke. Click here to read more.

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Reports

House sustains cigarette-tax veto (SC)
The South Carolina Senate and House recently voted in favor of a 50-cent cigarette increase to raise its lowest-in-the-nation cigarette tax for the first time since 1977.  The tax increase was defeated 54-57 when the House fell some 20 votes of the two-thirds needed to override a veto by Gov. Mark Sanford.  Increasing the 7-cent per pack tax to 57 cents would have generated an estimated $159 million, and the plan was to split most of the money between Medicaid expansions and helping lower-income workers buy health insurance. Click here to read more.

District of Columbia Council delivers victory for kids and taxpayers by doubling the cigarette tax to $2 per pack (DC)
The District of Columbia Council voted to increase the district’s cigarette tax by $1, bringing the total excise tax to $2 per pack. Research has shown that raising cigarette taxes by 10% can cut youth smoking by 7% and decrease overall cigarette consumption by 4%. By those numbers, the Campaign for Tobacco Free Kids predicts that the latest tax increase is expected to prevent 4,100 kids in DC from smoking, and to encourage 3,100 DC smokers to quit. For more information, click here.

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International

Chief has his own tobacco control plans (Canada)
In response to the Canadian government’s plans to shut down illegal tobacco sales on native reserves, Anishinabek Grand Council Chief John Beaucage proposed to work with the government to regulate tobacco sales on First Nations reserves. Beaucage’s proposal would limit advertising and access to First Nations tobacco products. The proposal also included a First Nations Health Tax, which would bring tobacco products sold on reserves to the price range of mainstream tobacco products, and would benefit First Nations health programs. Click here to find out more.

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