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Issue link: http://read.dmtmag.com/i/121500
NATONEWS State Tobacco Tax Update The new year brings more proposed tax hikes T he 2013 state legislative year looks very similar to the 2012 legislative year in terms of the number of bills introduced to raise cigarette and/or other tobacco product tax rates. In 2012, some 23 states considered bills to raise cigarette or tobacco taxes and only Illinois, Maryland and Rhode Island actually adopted legislation to increase these taxes. As of March 1st, the following 21 state legislatures are considering bills to increase or decrease cigarette or tobacco taxes: • Alabama: Two bills that would increase the cigarette tax by $.325/ pack and $1.00/pack, respectively. • Florida: Two bills with one bill raising the tax on non-settlement cigarettes by $.52/pack and a second bill raising the tax on all cigarettes by $1.00/pack. • Hawaii: One bill to impose an excise tax equal to $3.20/net ounce of a Thomas Briant is executobacco product, other than a cigar. tive director of the National • Kentucky: Three bills with one bill Association of Tobacco Outlets. NATO's toll-free increasing the cigarette tax by $.40/ number is (866) 869-8888 pack, the second bill raising the cigaand the association's Web site address is rette tax by $1.00/pack plus increaswww.natocentral.org. ing the tax on other tobacco products (OTP) from 15% to 40%, and the third bill imposing a surtax of $.50/pack on cigarettes and boosting the OTP tax from 15% to 30%. • Maryland: One bill introduced that would raise the cigarette tax by $1.00/pack, increase the OTP tax from 30% to 95%, tax cigars costing less than $20 at the 95% rate with a $3.00/cigar tax cap, and tax cigars costing more than $20 at a 15% OTP tax rate. • Massachusetts: Three bills introduced with one bill raising the cigarette tax by $1.00/pack, a second bill increasing the OTP tax and the tax on cigars weighing more than three pounds/thousand to 105%, and a third bill increasing the OTP tax and the tax on cigars weighing more than three pounds/thousand to 90%. • Minnesota: Four bills introduced with the first bill raising the cigarette tax by $1.60/pack and www.npnweb.com n NPN Magazine • • • • • • • • • • • • • • the OTP tax to 95% while also imposing a $2.83/ounce tax on moist snuff, the second bill raising the cigarette tax by $1.50/pack and raising the OTP tax to 95%, the third bill raising the cigarette tax by $2.35/pack while repealing the $.75/pack cigarette health impact fee and raising the OTP tax to 95% while also repealing the 35% health impact fee, and the fourth bill raising the cigarette tax by $1.29/pack and raising the OTP tax to 95%. Mississippi: One bill introduced to raise the tax on moist snuff to $.39/ounce. Missouri: Two bills introduced with one bill increasing the cigarette tax by $.26/pack, and the second bill raising the cigarette tax by $.17/pack. Nebraska: One bill introduced that would increase the cigarette tax by $.72/pack and also raise the OTP tax to 31%. New Hampshire: Two bills introduced with one bill defeated in committee that would repeal the future increase in the tobacco tax and a second bill that would raise the cigarette tax by $.20/pack. New Mexico: One bill to raise the OTP tax to 53%. New York: One bill to increase the cigarette tax by $1.65/pack. North Dakota: One bill to increase the cigarette tax by $.56/pack has failed in the House. Oklahoma: One bill to raise the cigarette tax by $.10/pack. Oregon: Three bills to raise the cigarette tax with increases of $.645/pack, $1.00/pack and $2.42/pack, respectively. Rhode Island: Two bills to raise the cigarette tax by $.90/pack each and one bill to reduce the cigarette tax by $1.00/pack. Tennessee: A bill would phase out the excise tax on cigarettes by July 1, 2015. Vermont: One bill to increase the tax on cigarettes by $1.00/pack and raise the tax on moist snuff by $.89/ounce. Virginia: A bill that would change the OTP tax method from a per ounce rate to 5% of the retail sales price has died in committee. Wyoming: A bill to increase the cigarette tax by $1.00/pack failed in the House. April 2013 11