States Propose Cigarette and Tobacco Tax Changes

Six states look to either increase or decrease taxes on tobacco products.

A number of new legislative bills proposed since Feb. 12, 2013 are seeking to alter cigarette and/or tobacco tax rates, the National Association of Tobacco Outlets noted.

The following has been proposed:

Hawaii:  House Bill No. 657 and Senate Bill No. 492 would impose an excise tax equal to $3.20 per net ounce of tobacco, not including large cigars, sold by wholesalers.

Kentucky:  House Bill No. 139 would impose an additional cigarette surtax of 40 cents per pack and re-enact the cigarette rolling paper tax at 25 cents per packet of 32 rolling papers.  House Bill No. 140 would increase the cigarette tax by 40 cents per pack and also re-enact the cigarette rolling paper tax at 25 cents per packet of 32 rolling papers.  House Bill No. 142 would raise the cigarette tax by 96 cents per pack, increase the tax rate on other tobacco products to 40% of the wholesale price and re-enact the cigarette rolling paper tax at 25 cents per packet of 32 rolling papers.  House Bill No. 388 would impose an additional cigarette surtax of 50 cents per pack, raise the tax on other tobacco products to 30% of the wholesale price, and increase the tax on moist snuff to 38 cents per unit.

Minnesota:  House Bill No. 509 would increase the cigarette tax by $1.50 per pack and raise the combined excise tax rate and health impact fee on other tobacco products to 95% of the wholesale price.  Senate Bill No. 209 would increase the cigarette tax by $2.35 per pack and raise the excise tax rate on tobacco products to 95% of the wholesale price (the bill would also repeal the 75 cents per pack cigarette health impact fee and the 35% tobacco product health impact fee).  Senate Bill No. 144 would increase the cigarette tax by $1.50 per pack and raise the combined excise tax rate and health impact fee on other tobacco products to 95% of the wholesale price.

Mississippi:  House Bill No. 119 would impose a tax rate of 39 cents per ounce on moist snuff.

Missouri:  Senate Bill No. 220 would increase the cigarette tax by 17 cents per pack.

Rhode Island:  House Bill No. 5362 would reduce the tax on cigarettes by $1 per pack.  Senate Bill No. 273 would increase the tax on cigarettes by 90 cents per pack.

Wyoming:  House Bill No. 199 that would have raised the cigarette tax by $1 per pack failed in the Wyoming House of Representatives.

 

 

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