NATO Talks Tobacco Taxes

tobaccoLARGE 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.



  1. Yes cigarette or tobacco tax should be increase so that some people may stop smoking because of more price of cigarette.

  2. All the more reason to switch to eCigs.

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