Excise Taxes

State

Poll: Citizens want to tax discount cigarette makers (FL)
A poll commissioned by Associated Industries of Florida shows that almost two-thirds of voters support imposing taxes on discount cigarette manufacturers that were not part of the master settlement to help pay for healthcare costs due to smoking. Dosal, one of the companies that would be affected by the tax, claims it was not part of the original lawsuit because it was not party to the same deceitful tactics that the major manufacturers were, and should not be penalized as they were. State lawmakers have not yet proposed any bills related to taxing discount cigarette manufacturers, but have indicated that such a bill will likely be filed. Click here to read more.

Department of Business and Professional Regulation wants citizens to “burn” illegal tobacco sales (FL)
Florida’s Department of Business and Professional Regulation’s Division of Alcoholic Beverages and Tobacco (ABT) has launched a new campaign allowing citizens to anonymously report vendors that sell untaxed cigarettes. A toll-free number is provided where callers can report illegal sales; once a violation has been confirmed, the informant is eligible for a reward of up to half of the fine charged against the illegal seller. ABT started the campaign in order to recover money lost to the state government from illegal, untaxed cigarette sales. Click here to read more or view the Department of Business and Professional Regulation’s website about the program.

Budget plan adds tax on soda, cigarettes (NY)
New York governor David Paterson has released a new state budget plan that would raise taxes on cigarettes and soda in an effort to increase revenue by about $1 billion. The cigarette tax would raise the tax per pack from $2.75 to $3.75; the soda tax would add one cent per ounce to soda and other sugary drinks. Advocates believe that these taxes would not just create revenue but also result in a healthier state. Click here to read more, or click here to read a statement of support from the Campaign for Tobacco-Free Kids. Related: State looking to find ‘favorable way’ to collect taxes on non-Indians The newly unveiled budget plan in New York includes plans for tax collection on cigarettes sold to non-natives on Native American land. However, the state’s plan is subject to “negotiation and litigation” in order to reach an agreement with the tribes. Click here to read more, or read a statement released by the Seneca Nation.

Tribe, state may revisit cigarette tax discussions (WA)
A U.S. District Court Judge has ruled that Washington State has the authority to enforce its cigarette tax on non-Indian buyers at tribal shops, and ordered the Yakama Nation and the state to work together to address the court with unresolved issues. The tribe had a previous agreement with the state that would assess non-tribal buyers with a tax, but it was terminated after the state determined the tribe was not upholding it. The state is seeking the tribe’s agreement on another compact that would require non-Indian buyers to pay state cigarette taxes. Click here for more details.

W.Va. Gov eyes cigarette tax for health bill costs (WV)
The governor of West Virginia is considering increasing the state’s cigarette tax to help fund programs mandated by federal healthcare legislation. The reform could cost the state anywhere from $150 to $725 million in order to extend Medicaid coverage. West Virginia currently has the highest rate of adult smoking and among the lowest state cigarette taxes in the United States. Click here to read more.

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National

Senecas confront tobacco roadblock
The Seneca Nation has begun efforts to fight Senate approval of the Prevent All Cigarette Trafficking (PACT) Act, which will prohibit the U.S. Postal Service from delivering cigarettes through the mail. The Seneca Nation relies on the Postal Service for shipping an estimated 70% of their tobacco sales, and the Senecas estimate that if the bill is passed, 1,000 jobs will be lost due to the collapse of the tobacco trade in the Nation. Others believe that the Senecas are inappropriately using their tax-exempt status to build an economy on a deadly product. The House passed a version of PACT Act 397 to 11 in May 2009, and the bill is widely supported by anti-smoking groups and major tobacco manufacturers alike. Click here to read more.

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International

Ballarat doctors support smoke price rise plan (Australia)
The Australian Medical Association-Victoria has submitted a proposal that would require tobacco vendors in the state of Victoria to be licensed, and would raise the price of a pack of cigarettes to $20, nearly double its current price. The doctors believe that while these measures may not thwart current smokers, they would greatly reduce the number of sales to minors. Additionally, the price increase would provide the government with $3 billion over four years. Click here to read more, or click here to view the proposal.

Greece raises tobacco, alcohol taxes (Greece)
Greece’s government increased its taxes on tobacco and alcohol this January. The taxes will produce one billion euro in revenue needed to aid the country’s debt, and will discourage consumption of substances that harm the nation’s health. Cigarette taxes rose from 57.5% to 70%, and a 20% tax increase was applied to alcohol. Greece has one of the highest smoking rates in the European Union. Read more here.

Japan’s tobacco tax to raise cigarette prices by 33% (Japan)
Japan’s cabinet has approved a plan to raise the tax per cigarette by 3.5 yen (4 cents) in October 2010, which will raise the average cost of a pack by 33% to 400 yen. This is the first increase in tobacco taxes in Japan in four years, and marks the largest tax increase since 1985, when Japan Tobacco, Inc. was privatized. The tax is intended to increase the country’s revenue and discourage smoking. Click here to read more.

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