Excise Taxes

State

Tobacco tax fact sheets – May 2009
The Campaign for Tobacco-Free Kids updated its state tobacco tax fact sheets after South Carolina passed a fifty-cent cigarette tax increase in May. The overall average state tax is $1.42 per pack. With South Carolina’s tax increase, the average tax among major tobacco states increased by eight cents to 48.5 cents per pack. Three states (California, Missouri, and North Dakota) have not increased their cigarette tax rates since 1999 or before. TFK’s tobacco tax fact sheets are updated regularly as new state taxes are passed. Click here to access the tobacco tax fact sheets on TFK’s website.

Illinois House to debate $1 tax increase on cigarettes (IL)
The Illinois House is considering a bill that would add $1 to the price of a pack of cigarettes. The proposed tax increase would bring in an estimated $300 million to go toward a state healthcare fund, freeing up funds for other public services. Opponents of the bill say that retailers near the state borders are already suffering from the recession, and could lose even more business to stores in neighboring states. The Senate passed the bill last year 30-26; the House vote is also expected to be close and likely split on party lines. Click here to read more. Update: Despite general opposition to tax increases in the state legislature, Governor Quinn continues to push for a cigarette tax increase as a solution to the state budget crisis. Read more here.

Bill would pinch snuff, cigar users with tax (PA)
Lawmakers in Pennsylvania have introduced a bill that would create a tax on tobacco products that do not fall under the state tax on cigarettes and cigarillos. The bill’s supporters say that the tax will help prevent youth from using smokeless tobacco while remediating the state’s budget problems. The proposed tax rate would be similar to the cigarette tax, and half of the estimated $80 million in tax revenue will fund cancer prevention and smoking cessation programs that had funding cuts last year. Pennsylvania is currently the only state that does not tax smokeless tobacco and one of two that does not tax cigars. Read more here.

SC House overrides gov’s cigarette tax hike veto (SC)
South Carolina’s House and Senate have voted to override Governor Sanford’s veto of a bill that will raise cigarette taxes by 50 cents per pack. Sanford had vetoed the bill because he opposed any tax hike that did not come with an accompanying decrease. The governor and others opposing the tax claimed that the higher cigarette tax would encourage smokers to go to neighboring states to purchase products, and also would not create enough tax revenue for Medicaid. Tax supporters say that the tax will help prevent youth smoking, while generating $125 million for the state Medicaid program. Notably, the bill dedicates $5 million for tobacco prevention and cessation funding. Missouri now has the country’s lowest cigarette tax at 17 cents per pack. Click here to read more about the veto and override, or click here to read a statement from the Campaign for Tobacco-Free Kids.

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