Tobacco Pricing

State Policy

Jindal considering cigarette tax increase (LA)
Louisiana Governor Bobby Jindal has said that he would consider raising the state cigarette tax. In 2011, Jindal was a firm opponent of increasing any state taxes; however, his current position is that a tobacco tax hike will not increase the net amount of money the state collects because it will be offset by tax cuts in other areas. A tobacco tax bill proposed in 2011 raised revenue for the state to assist in funding healthcare services, whereas any new legislation would allow residents of Louisiana to pay less in other taxes such as in state income taxes. Louisiana’s current cigarette tax is $0.36 per pack which is lower than neighboring states, and research shows that increasing the cost of cigarettes is effective in influencing people to quit smoking. The 2013 Louisiana legislative session does not start until April, at which time this matter will be discussed further. Click here to read more.

Cigarette tax increase proposed in Minnesota (MN)
Minnesota smokers could see an increase to the state cigarette tax. Governor Mark Dayton is proposing a budget plan that includes an increase to the state tobacco tax by 94 cents to $2.17 per pack. If this proposal is approved, smokers would pay about $10 more per carton. A tax hike of this magnitude could help decrease smoking rates in the state. Click here to read more.

Bill would increase state tax on cigarettes (NE)
Nebraska Senator Mike Gloor introduced a bill, LB439, that would increase the state cigarette tax by $0.72 per pack to a total of $1.36 per pack, and the revenue received would be used to pay for costs the state will incur as it implements the Affordable Care Act. This would be the first increase to the state’s tobacco tax in ten years, and the proposal has garnered a lot of support. Gloor hopes this increase will be an incentive for residents of Nebraska to quit smoking. Click here to read more.

Wyoming lawmakers propose two tobacco tax increases (WY)
A new proposed bill in Wyoming would raise the cigarette tax by a dollar to $1.60 per pack. Representative Gerald Gay is sponsoring this bill, and has obtained supporters from both chambers of legislature. A higher cigarette tax is expected to improve the public’s health by reducing the prevalence of smoking, and would have the added benefit of raising about $22.34 million annually for the state. The state is experiencing a lack of healthcare funding, and revenue received from the tax would fund Medicaid, which is used by a large number of smokers in the state. Other tobacco products that may see a state tax increase are smokeless tobacco and cigars, if legislators pass a separate bill introduced by Representative Lee Filer. Click here to read more.

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