OAKBROOK TERRACE, Ill. -- While many states have proposed measures to increase excise taxes on cigarettes, other tobacco products (OTP) and electronic cigarettes, few have passed. Here’s an update on 10 proposals that have been defeated, postponed or died in committee, according to the National Association of Tobacco Outlets (NATO):
California: A bill that would have increased the cigarette tax by $2 per pack, the OTP tax by 230% and impose a new tax on e-cigarettes based on the wholesale price died upon the adjournment of a special session of the California legislature on March 10.
Florida: A bill to increase cigarette taxes by $2 per pack died in committee.
Hawaii: A number of tax measures died due to missing a procedural deadline. Those included a 50-cent tax on premium cigars, a tax equal to 80% of the wholesale price of all tobacco products except large cigars (but including e-cigs), reducing the tax on large cigars to the lesser of 50 cents per cigar or 50% of its wholesale price, increasing the cigarette tax by 80 cents per pack, a 30% tax on wholesale price of e-cigs and e-cig-related products, and increasing the OTP tax from 70% to 80% of the wholesale price.
Indiana: A bill including a $1-per-pack cigarette tax increase failed due to adjournment of the state Senate.
Maryland: A bill that would apply the cigarette tax to vaping devices was withdrawn after the House Economic Matters Committee reported unfavorably on the measure.
Mississippi: A House bill to increase the cigarette excise tax by 40 cents per pack was defeated, and a House bill to apply a tax of 68 cents per milliliter of nicotine liquid died in committee.
Nebraska: The Associated Press reported the Nebraska Revenue Committee rejected a proposal to triple the state’s cigarette excise tax (going from 64 cents to $2.14 per pack) and increase the OTP tax rate from 20% to 31%.
Rhode Island: Several proposed measures were not enacted, but held for further study. Those included two different bills that would apply the cigarette tax to little cigars and a bill to apply the state sales tax to electronic cigarettes.
Utah: A bill that would tax e-cigs at 86% of the manufacturer’s sales price died upon the adjournment of the state Senate session on March 10.
West Virginia: AP reported the West Virginia House committee voted 21 to 2 against a bill to increase the cigarette tax by 45 cents, likely killing the measure.
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