Excise Taxes

State

Voters say yes to raising tobacco taxes (AK)
An overwhelming majority of voters favored a tax hike on cigarettes in a recent municipal election in Juneau, Alaska. Beginning January 1, the local cigarette tax will increase to $1 per pack from 30 cents per pack. The tax on other tobacco products will increase to 45% from 12%. The ballot measure originated when Juneau's office of the National Council on Alcohol and Drug Dependence asked the Juneau Assembly to raise the city’s tobacco taxes to make the taxes comparable with other parts of the state. The tax increase is estimated to increase city revenue to $1.7 million a year, up from $517,800 in 2008. Click here for more.

Quinn, Madigan favor cigarette tax hike to pay for college scholarships (IL)
Illinois legislators are considering a $1 increase to the state cigarette tax to finance a $200 million shortfall in funding for a college scholarship program. At a September rally at the University of Illinois at Chicago, Governor Pat Quinn told students that restoring the scholarship funding is a top priority for October’s veto session. He mentioned a cigarette tax as a short-term source of funding for the scholarships, while an income tax increase may be a long-term revenue source. Click here to read more. Click here for more details about the scholarship funding situation and proposed solutions.

Budget strife escalates amid protests in Lansing (MI)
After Michigan Governor Jennifer Granholm vetoed six budget bills from the state Senate, legislators continue to grapple over the details of the budget. Key disagreements relate to approaches to raising revenue to fund public schools, state scholarships, and healthcare. Several revenue sources have been proposed. Among them are two tobacco tax proposals: a 25-cent cigarette tax increase, and a tax on other tobacco products. Read more here. Click here to read a summary of the proposed revenue sources.

Pennsylvania lawmakers end the budget stalemate (PA)
After a long stalemate over the state budget, Pennsylvania legislators have reached a compromise, and Governor Rendell signed the budget on October 9. The budget cuts spending by 1%, and includes taxes on cigarettes and small cigars. The cigarette tax will increase 25 cents, from $1.35 to $1.60 per pack, and small cigars will be taxed at the same rate as cigarettes. However, the state will continue its policy of not taxing other tobacco products. Click here for more details from Pennsylvania’s Office of the Budget, or click here to access the budget.

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National

Updated state tobacco tax fact sheets from Campaign for Tobacco-Free Kids
The Campaign for Tobacco-Free Kids has updated its fact sheets on state cigarette taxes to reflect Pennsylvania’s recent cigarette tax increase. The overall national average state cigarette tax is currently $1.34. Click here to access the updated chart of state cigarette excise tax rates & rankings. Click here to download the map showing state cigarette tax rates.

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