Tobacco Pricing

State Policy

Louisiana governor shelves tax plan (LA)
Louisiana Governor, Bobby Jindal, announced that he will be shelving his plan to eliminate the state income tax, which included an increase to the state’s tobacco tax from 36 cents per pack to $1.41. The proposal was shut down before it could even be discussed in a House committee. Debate over the cigarette tax continues, while Jindal has pledged to oppose any tax increases that aren’t accompanied by equal tax cuts. Click here to read more.

Massachusetts House of Representatives votes for $500 million tax increase, including hike in gas, cigarette taxes (MA)
The Massachusetts House voted overwhelmingly to raise gas, cigarette and smokeless tobacco taxes in order to raise $500 million a year. The bill includes a $1 increase in the cigarette excise tax to $3.51/pack, and would also raise the smokeless tobacco and cigar taxes. This would be the first cigarette tax increase in the state since 2008. Click here to read more.

Bill would tax cigars, smokeless tobacco (PA)
A newly proposed bill in Pennsylvania would add a new 25% state tax on the wholesale price of cigars and smokeless tobacco. The estimated revenue that would be gained from this new tax would be about $44 million, which would be used for mass transit, roads and bridges in the state. Currently, cigars are exempt from taxation in Pennsylvania, and it is the only state that does not tax smokeless tobacco. Click here to read more. Click here to track HB 926, which has been referred to the House Finance Committee.

Proposed bill would raise cigarette taxes by $1 (WV)
The West Virginia Senate has proposed a bill that would raise the state’s cigarette taxes by $1 to become $1.55/pack and increase taxes on other tobacco products from 7% of the wholesale price to 50% of the wholesale price. It has been estimated that the proposed tax hike would garner more than $120 million in revenue for the state. Click here to read more.

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National Policy

President's plan to increase tobacco tax will prevent kids from smoking and save lives
President Obama has included a tobacco tax increase in his new budget plan, and requests Congress’ support. Revenue acquired from the increase would be put toward early childhood education initiatives. Increases in cigarette and other tobacco taxes have been proven to be effective in reducing tobacco use, especially among youth. Click here to read more, or click here for details about the cigarette tax. Click here to read the statement released by the Campaign for Tobacco-Free Kids. To read the American Cancer Society Cancer Action Network’s (ACS-CAN) statement, click here. Click here access the American Heart Association’s statement.

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