Tobacco Pricing

State Policy

California program collects $1.6 million in internet cigarette taxes (CA)
The California Board of Equalization (BOE) is now collecting tobacco excise taxes and use taxes from people who ordered untaxed tobacco from out of state vendors via internet, mail, or the telephone. The BOE collects information about who is purchasing the out of state cigarettes and then sends the individual a bill for back taxes and penalties. During fiscal year 2010-2011, BOE collected $1.6 million in back taxes. Learn more by clicking here and visit the California BOE website here.

Ballot initiative would quintuple Missouri cigarette taxes (MO)
A coalition of health advocates in Missouri has filed a ballot initiative to raise the state’s notoriously low 17-cent cigarette tax by 80 cents per pack. The organizations must collect more than 90,000 signatures on their petition by May 2012 to get the measure on the ballot in time for the November 2012 general election. Public health advocates are excited about the possible cigarette tax hike because the increase in the price of cigarettes is expected to contribute to a reduction in smoking rates within the state. The American Cancer Society estimates that the tax would bring an annual $308 million in new revenue for the state. Read more about the ballot measure here. Click here to view a press release from the American Cancer Society, or click here to read a fact sheet from the Campaign for Tobacco-Free Kids on the toll of tobacco use in Missouri.

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National Policy

Bill would raise taxes on all types of tobacco
A group of U.S. senators has proposed a bill that would increase taxes on all types of tobacco products, which would help fund the Disabilities Education Act. The bill would increase the federal excise tax from $1.006 per pack to $2.01 per pack and would increase the tax on snuff from $1.51 per pound to $26.79 per pound, or approximately $2 per pack. Many tobacco control advocates believe that smokeless tobacco should have comparable taxes to cigarettes in order to discourage smokers from switching to smokeless tobacco to save money. Follow Senate Bill 1403 here, or read more here.

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