Excise Taxes

State

Updated tax factsheets
State tobacco tax factsheets on the Campaign for Tobacco-Free Kids website were updated in August to reflect the newest state and local tobacco tax increases. CTFK has updated its map of state and local cigarette tax rates and rankings. Information is also available on trends in state taxes and recent tax increases. Click here to access the factsheets.

Smoke tax on Legislature’s agenda as fiscal noose tightens (CA)
California’s fiscal crisis is worsening, despite state government officials’ attempts to relieve the financial pressure. State officials are looking to a cigarette tax increase from 87 cents to $1.50 per pack that may raise $1.2 billion a year. However, critics argue that a higher tax is not an ideal solution because it falls mostly on lower-income consumers, and tobacco revenues will fade as smoking rates decline, causing the tax to be an unstable source of revenue. Additionally, there are concerns that rising prices will contribute to an increase in cigarette smuggling. Click here for more details on the proposed cigarette tax.

D.C. council approves tax hikes, spending cuts (DC)
The District of Columbia Council has approved a FY 2010 budget proposal that will raise the cigarette and small cigar tax by 50 cents to $2.50 a pack. This would make the District's levy one of the highest in the nation. Mayor Adrian Fenty has said that he will probably sign the council’s proposed budget. Click here to read more. Read a statement supporting the tax increase from the Campaign for Tobacco-Free Kids (CTFK) here. CTFK also notes that during the budget negotiations, the DC Council missed an opportunity to renew funding for the highly successful DC Tobacco-Free Families tobacco prevention and cessation program, which is due to expire after September.

Southwest Florida cigarette sales go up in smoke (FL)
A month after the $1 tax increase on cigarettes, some Florida retailers are reporting a decrease in gas station business by 30%. One retailer has observed that people are cutting down on their smoking and trying to make cigarette packs last longer. The president of the Petroleum Marketers Association reports that businesses along the northern border have seen a decline in sales of 10% to 15%. Read more here.

Miss. Cigarette tax hike raises $36.8M (MS)
Mississippi’s recent cigarette tax increase has allowed the state to collect $36.8 million since the fifty-cent tax hike in May. The tax is likely to generate close to $113 million this fiscal year. Two groups that supported the tax increase are pleased with the current outcome: lawmakers who are searching to generate more revenue to balance the state’s budget, and health care advocates who hope the higher tax will result in more smokers quitting. Already, there are reports of smokers cutting down their cigarette consumption and seeking help to quit. Click here for more.

top

Back to Table of Contents