As of June 28, 2013, three states have enacted either cigarette and/or tobacco tax rate increases or decreases, reports the National Association of Tobacco Outlets (NATO). The new tax law changes and the respective effective dates are as follows:
* Kentucky:House Bill 361 was passed and signed into law which lowers the state tax on chewing tobacco to $.19 per each one and one-half ounce single unit, $.40 per half-pound unit, $.65 per pound unit, and an additional $.19 for each four ounces or more over 16 ounces, while also setting the tax rate on other tobacco products, except moist snuff and chewing tobacco, at 15% of the wholesale price. This lower tax rate on chewing tobacco will go into effect on August 1, 2013.
* Minnesota: The Minnesota legislature passed and the governor signed into law a $1.60 per pack cigarette tax increase, an increase in the OTP tax rate to 95%, a minimum tax on moist snuff of $2.83 per container, and an increase in the non-settlement cigarette fee to $.50 per pack. The cigarette and OTP tax increases go into effect on July 1, 2013 and the minimum moist snuff tax increase becomes effective on January 1, 2014.
* Texas: House Bill 3536 passed the legislature and has been signed by the governor which would impose a tax of 2.75 cents per cigarette on both non-settling manufacturer cigarette brands and non-settling manufacturer cigarette tobacco. The effective date for the new fee is September 1, 2013.
Tobacco Tax Legislation Not Passed
As a follow up to the June 10, 2013 NATO News Bulletin which listed the states where cigarette and/or tobacco tax bills that were introduced during 2013 and have either not been passed or died due to the legislature adjourning, the following additional state legislature has adjourned without passing a cigarette tax increase:
Connecticut: House Bill 5878 proposing a $.95 per pack cigarette tax increase failed due to the adjournment of the legislative session.