Faced with a deepening budget shortfall that now exceeds $400 million, lawmakers are trying to find ways to close the gap, said the report. [image-nocss] The committee heard testimony on a bill that would raise the tax on cigarettes by 55 cents per pack to the national average of $1.34. It also would increase the tax on tobacco products, such as cigars and chewing tobacco, to 40% from 10%. The increased taxes could bring in an estimated $69.5 million in new tax dollars, according to the report..
Committee Chairman Les Donovan, noted the dire budget problems. "We have to do something on the revenue side," he told the newspaper. "We don't know if we can cut enough more spending to get us out of here this year. If we can't, we're going to do something to raise some revenue some way to try to get us whole again."
Supporters of the tax increase said it was necessary to help avoid dire cuts and would lower smoking among youths. Oopponents said a tax increase would devastate their businesses.
"In my 30-plus years of observing and serving in the Kansas Legislature taxes have always been a popular topic," Doug Mays, a former Topeka lawmaker who spoke on behalf of the Cigar Association of America, told the paper. "But in all that time, I can't recall such stratospheric numbers being proposed in this bill."
The tax increase, opponents said, would drive business online and to neighboring Missouri, whichhas one of the lowest tobacco taxes in the nation at 17 cents per pack.
Brenda Ellsworth, operations officer for Pete's convenience stores, said Kansas c-stores also are disadvantaged by a higher gasoline tax and prohibition on selling strong beer and wine. "Our state has provided wonderful roads for our customers to use while commuting to Missouri," she told the Capital-Journal.
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