Tobacco Pricing

Reports

Cancer Society seeks to put tobacco tax increase on ballot (MO)
The American Cancer Society has obtained approval from the Missouri secretary of state to begin circulating a petition that would increase the state tobacco tax by four cents per cigarette, or 80 cents per pack of 20 cigarettes. Currently, a pack of cigarettes has a 17 cent state tax. Proponents of the higher tax believe it would benefit the state by bringing in money to finance tobacco-free education, and the more expensive price would discourage residents from smoking. Click here for more details.

New Hampshire cigarette tax cut failing to boost sales (NH)
A ten-cent state cigarette tax decrease has failed to increase revenue in New Hampshire, according to figures from the state department of revenue. During the first four months of the fiscal year since decreasing the cigarette tax, New Hampshire collected $77.5 million, compared to $84 million at the same time last year, prior to the tax cut. When the tax cut passed, a report financed by the New Hampshire Grocers Association predicted that the tax cut would increase sales, an effect that has not yet been seen. Government officials continue to express concerns that the lower tax rate could prompt people to smoke more or increase the number of people who start to smoke. Read more here.

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State Policy

South Dakota's revenue from tobacco tax down 9 percent (SD)
In the year since a statewide smoke-free bars and restaurants policy has been implemented, South Dakota’s tobacco tax revenue has decreased by nine percent to $52 million. A large share of the tax money is used to fund tobacco prevention programs and healthcare for tobacco-related illnesses. It is unclear if the decline in revenue is related to the newly imposed smoke-free policy or if people have switched from cigarettes to smokeless tobacco or roll-your-own cigarettes to avoid high cigarette taxes. Read more here.

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