Tobacco

July 1 Cigarette Tax Hikes

N.Y., Hawaii, N.M., S.C., Utah see increases on tobacco
WASHINGTON -- Five states implemented cigarette tax increases on July 1: New York, $1.60 increase to $4.35 per pack; Hawaii, 40 cents to $3 per pack; New Mexico, 75 cents to $1.66 per pack; South Carolina, 50 cents to 57 cents per pack; and Utah, $1 to $1.70 per pack, reported The Campaign for Tobacco-Free Kids.

On May 1, Washington increased its cigarette tax by $1 to $3.025 per pack.

New York's increase will give it the highest state cigarette tax at $4.35 per pack, while South Carolina's increaseits first since 1977means it will no longer have the lowest cigarette [image-nocss] tax in the nation. Missouri will now have the lowest cigarette tax at just 17 cents a pack. After the July 1 increases, the average state cigarette tax will be $1.45 per pack, while the federal government levies an additional $1.01 per pack.

States with the lowest cigarette tax rates are Missouri (17 cents per pack), Virginia (30 cents), Louisiana (36 cents), Georgia (37 cents) and Alabama (42.5 cents).

Click hereto view a chart of current state cigarette tax rates. Andclick here to view it in map format.

Also taking effect this week, a new federal law is intended to curb tobacco tax evasion and curtail sales of low-cost cigarettes and other tobacco products over the Internet and through the mail. As required by the law, the Prevent All Cigarette Trafficking (PACT) Act, the U.S. Postal Service on Tuesday instituted a ban on mailing tobacco products (with very minor exceptions). The law also requires Internet tobacco sellers to pay all applicable taxes and affix tax stamps before delivery to any customer; requires that age and identification of purchasers be checked at both purchase and delivery; and provides government officials with new tools to crack down on tobacco tax evasion.

(Click here for previous CSP Daily News coverage.)

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