Excise Taxes

State

Amendments to the cigarette and tobacco products taxes (NY)
The State of New York has released emergency regulations that amend laws relating to the sale of tax-free cigarettes to Indian reservations. The amendments provide a way to collect taxes on cigarettes sold on Indian reservations to non-Indians and non-tribal members, while also giving each tribe an adequate supply of tax-free cigarettes for the use of tribe members. Effective immediately, tribes can opt to participate in either the “Indian tax exemption coupon system” or the “prior approval system,” both of which allow them to obtain tax free cigarettes based on the probable demand of the qualified Indians on the reservation plus an additional amount needed for official tribal use. Cigarettes to be sold to non-tribe members can be purchased from regular dealers, provided the packages bear the proper tax stamp. Click here to read more about the amendments.

Poll shows growing support in North Carolina to increase state's tobacco tax (NC)
A new poll conducted by the Gillings School of Global Public Health at the University of North Carolina indicates that almost half of the state’s residents support increasing the state cigarette tax to meet the national average. In March and April of 2010, a random sample of 700 residents was polled by phone on their feelings about raising cigarette taxes. The results show that 47.3% of residents favor increasing the tax per pack from $0.45 to $1.34 (the national average at the time of the survey), while 49.3% oppose it, and 3.4% were undecided. There was significant variation in support between subgroups; majority support was found among nonsmokers, those with higher income, and those with some post-secondary education. Statewide polls conducted since 2004 have shown that the majority of residents support increases in the state cigarette tax as a means to generate state revenue. Click here for more information.

Pennsylvania snuffs tobacco taxes for second straight year (PA)
Pennsylvania lawmakers, threatened by the prospect of lost jobs and reluctant to raising taxes, have eliminated a provision in the state budget that would impose a tax on cigars and smokeless tobacco products. Pennsylvania is the only state that does not tax smokeless tobacco and remains one of three that does not tax cigars. Major cigar distributors in the state lobbied legislatures, saying that if cigar taxes were created, they would move to Florida or New Hampshire, states that do not tax cigars. Those supporting the measure hoped to raise $104 million per year from increased taxes on cigarettes, cigars, and smokeless tobacco. Click here to read more.

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National

Five states increase cigarette taxes on July 1
Hawaii, New Mexico, New York, South Carolina, and Utah all implemented cigarette tax increases starting July 1. The increased taxes are designed to help states fight budget deficits as well as to discourage smoking. By raising the state tax from $2.75 to $4.35 per pack, New York became the state with the highest state cigarette tax, while South Carolina is no longer the state with the lowest cigarette tax after its tax rose from 7 to 57 cents per pack. The other tax increases are as follows: Hawaii, from $2.60 to $3; New Mexico, from 91 cents to $1.66; and Utah, from 70 cents to $1.70. The average state cigarette tax is now $1.45 per pack. Read more here, or see a list of current state cigarette taxes and rankings.

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