Tobacco Pricing

Research

Use of price-minimizing strategies by smokers and their effects on subsequent smoking behaviors
According to a study published in Nicotine & Tobacco Research, the use of cigarette coupons and promotions may decrease the efficacy of cigarette taxes in decreasing smoking rates. Researchers surveyed study participants on their use of price-minimizing strategies, such as buying from less expensive retailers, using coupons or promotions, or switching to a cheaper brand. Results show that 78% of participants used some type of price-minimizing strategy, and respondents who used more strategies were less likely to decrease their cigarette consumption. The authors suggest that prohibiting the use of coupons and promotions for cigarettes may bolster the effect of cigarette taxes in reducing smoking prevalence. Read the study abstract here.

top

State Policy

Legislators hoping to increase cigarette tax (AL)
Two Alabama lawmakers have filed proposals to raise the state cigarette tax once Alabama’s legislative session begins in February. House Bill 27, filed by Representative Patricia Todd, would raise the tax by 32.5 cents per pack, bringing the tax to $0.75. A proposal by Representative Joe Hubbard, House Bill 9, would raise the tax by $1 per pack, which would bring the tax to $1.43. The extra tax money from either of the bill proposals would go to Alabama’s General Fund, which provides healthcare for lower-income and disabled residents. In the past, cigarette tax increases have failed to pass and some members of the legislature do not believe a tax increase would pass the Senate. Click here to read more, and follow HB 27 by clicking here, or track HB 9 here.

Florida legislator wants $1 cigarette tax increase in exchange for lower driver fees (FL)
Florida Representative Jim Waldman has introduced a bill aimed at increasing cigarette taxes by $1 per pack. Waldman hopes a tax increase will decrease tobacco use among Florida youth. To appeal to the public and lawmakers, Waldman suggests a decrease in motorist fees, such as fees for vehicle registration and driver licenses. It is unclear whether this bill would gain support in the Florida Senate because many lawmakers do not want to raise taxes. Click here to read more and track HB 1049 by clicking here.

Idaho cigarette tax debates may rise from ashes (ID)
Idaho’s House Minority Leader John Rusche would like to introduce an increased cigarette tax bill in the current legislative session, even though Democratic lawmakers could not get a hearing on a cigarette tax bill in 2011. Rusche believes an increase in the cigarette tax would discourage young people from starting to smoke. Governor Otter said he would consider raising the tobacco tax as long as the revenue from the bill goes toward smoking-related Medicaid costs and cessation services. House Speaker Denney has raised concerns that an increased cigarette tax would cause smokers to purchase their cigarettes on Indian reservations, where the taxes may be lower. Click here to read more.

New York Governor takes aim at loose tobacco (NY)
New York Governor Cuomo has proposed taxing loose tobacco at $4.35 per ounce, which is the tax per pack of cigarettes in the state. The proposed tax on loose tobacco would close a loophole in New York that makes it cheaper to buy loose tobacco and roll-your-own cigarettes. Currently, loose tobacco is federally taxed at $2.80 per pound. It is hoped that increasing the state tax would decrease the smoking rate, leading to a healthier New York. Click here to read more, and click here to track SB6259, which has been referred to the Legislative Finance Committee.

Tax on cigarettes, plastic bags fails in Virginia House (VA)
A Virginia House subcommittee voted unanimously to table House Bill 160, a proposal that would increase the state cigarette tax from $0.30 to $1.45 per pack, making the bill unlikely to pass. Most of the revenue from the tax would have provided relief for the personal property tax on private cars and pickup trucks, while a small portion of the revenue was dedicated to smoking prevention and cessation programs. Click here to read more.

top

Back to Table of Contents