Excise Taxes

State

Cigarette tax hike may be on the way (AL)
A bill has been proposed in Alabama’s House that would raise the tax on a pack of cigarettes by $1. Supporters estimate that the increase will raise $205 million per year in revenue and will help reduce smoking prevalence in the state. Opponents say that the measure would harm the tobacco industry. Alabama’s current excise tax is $0.42 per pack, and 20% of adults in the state smoke. As of late April, the legislation had not reached the House or Senate floor. Click here to read more, or click here to track the status of the bill, HB 274.

Cigarette tax hike sought (LA)
Representative Harold Ritchie has filed legislation that would increase Louisiana’s cigarette excise tax from $0.36 to $1.06 per pack. Supporters of HB63 have said that the law will lower healthcare costs, discourage young people from smoking, and raise $178 million per year that could be spent on healthcare. Governor Bobby Jindal has announced that he will not support any tax increases in the state and will veto the bill if it is passed. In addition to raising cigarette taxes, the proposal would also raise taxes on cigars and smokeless tobacco. The bill will be considered in the House during the regular legislative session, which began on April 25. Read more here.

Sin taxes on booze, tobacco eyed by NV Legislature (NV)
A pair of bills has been introduced to Nevada’s Assembly that would raise taxes on cigarettes and alcohol in an effort to raise revenue for the state. The tobacco bill, AB333, would increase taxes on a pack of cigarettes to $1.70. Anti-smoking advocates say that the tobacco tax increase would prevent tobacco-related disease and youth initiation. Opponents of the bill say that the measure limits individual choice and could hurt businesses. Another cigarette tax increase bill, SB386, which would raise cigarette taxes by $2 per pack, is currently in the Senate Revenue Committee. Click here to read more.

Heated debate over proposed N.H. tobacco tax cut (NH)
This month, the deliberations have continued in New Hampshire over whether to decrease the state’s cigarette tax. Fueling the debate are conflicting reports that differ on whether the tax cut would help or harm the state’s economy. Reports from the New Hampshire Grocers Association and Southern New Hampshire University (SNHU) claim that decreased taxes would stimulate tobacco sales and increase state revenues. An estimate from PolEcon Research firm questioned the economic assumptions made in the SNHU report, and concluded that the likely outcome of a tax cut would be a $9 million drop in state revenues. Another estimate from the state Department of Revenue Administration found that decreasing the cigarette tax would result in a $7 million to $14 million drop in state revenues. Because tobacco taxes are the third-largest source of tax revenue for the state, a lot is at stake. Click here for more information. Update: Senate lacks votes to lower NH tobacco tax The Senate President has reported that the bill lacks enough votes to pass in the Senate, and the bill has been tabled. It is uncertain whether the bill will gather support by the end of the legislative session. Click here to read more.

Martinez vetoes cigarette tax bill (NM)
New Mexico Governor Susana Martinez has vetoed a bill that would have taxed smaller cigarette companies that are exempted from the Master Settlement Agreement, citing a campaign promise to not raise taxes. The bill’s sponsors said it would have made a fairer system that would have taxed all cigarette manufacturers equally, since some sales are currently tax-exemptions and tax credits. It was estimated that the measure would have brought in $7.5 million per year in revenue. Read more here.

Tax increase on some smokeless tobacco proposed (OK)
A bill in the Oklahoma Senate would change the taxation structure of moist snuff from 20% of the product price to $1.20 per ounce. The tax increase would raise $8 to $9 million per year that would be used to fund a scholarship program that requires participating primary care physicians to serve rural and high poverty areas of the state. Some of those opposed to the change from price-based to weight-based taxes note that it would not allow for adjustments due to inflation. If the state legislature does not pass the tax hike with 75% majorities in the House and Senate, it will become a referendum that will be decided on a statewide vote. Read more here.

top

Back to Table of Contents