Excise Taxes

State

California democrats seek budget that raises tobacco, oil taxes (CA)
California lawmakers are battling over whether to raise taxes to patch a $24 billion state budget gap. A cigarette tax increase from 87 cents to $1.50 is among the taxes proposed in the current budget. Democrats are six votes short of the two-thirds approval needed to pass their budget proposals, allowing Republicans to block passage. Republican lawmakers and the governor have vowed not to raise taxes during an ailing economy, and after voters overwhelmingly defeated multiple budget-related ballot measures. Read more about the budget crisis here, or click here for background information on the cigarette tax.

House defeats cigarette tax increase (LA)
The Louisiana House voted 45-55 to defeat a measure to raise the state’s cigarette tax by 50 cents per pack. Although the proposal was voted down, reaching a House vote was a small victory. The House Ways and Means Committee killed an earlier version of the bill that called for a $1-per-pack tax increase, and after the committee narrowly passed the 50-cent tax hike, opponents of the bill tried to delay a floor vote by attempting to shift the bill into more committee hearings. The tobacco tax proposal may still be introduced in an amendment to a Senate bill. Click here for more details.

Oregon legislature passes smokeless tobacco product tax increase (OR)
A new law was passed in Oregon that increases the tax on smokeless tobacco products. The law will also protect youths from tobacco marketing by holding smokeless tobacco companies accountable to the marketing restrictions outlined in the Master Settlement Agreement. The goals of the new law will be to prevent children from having access to smokeless tobacco products, and to limit the marketing of these products. The products include new dissolvable candy flavored and pouch tobacco products, chewing tobacco products, and cigars, as well as other smokeless tobacco products. Click here to read more. Related: Oregon Legislature doesn't increase cigarette tax H.B. 2122, a bill that would increase the state cigarette tax by sixty cents, will not be passed this legislative session. The bill lacked legislative support, and there were concerns over a lack of voter support. The bill is likely to be reintroduced in early 2010. Read more here.

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