Tobacco

An Update on State Tobacco Tax Legislation

NATO executive director provides the latest on taxation efforts at the state level

Almost two months into most state legislative sessions, 18 states are considering cigarette and other tobacco product (OTP) tax increases either introduced as bills or as a part of a governor’s budget proposal.  A brief summary of the states with tax proposals is as follows: 

StateBill Number; Proposed TaxStatus of Bill
Alabama

HB 9: Increase cigarette tax by $1.00 per pack to $1.425 per pack

HB27: Increase cigarette tax by $.325 per pack to $.75 per pack

HB244: Proposed amendment to state constitution to increase cigarette tax by $.325 per pack to $.75 per pack

In Committee

 

In Committee

 

In Committee
Florida

SB 1598: Impose a $.82 per ounce tax on roll-your-own (RYO) loose tobacco

SB 1842/HB 1049: Impose a surcharge of $.05 per cigarette equal to $1.00 per pack

In Committee

 

In Committee
Hawaii SB 2422: Increase OTP tax to more than 70% of wholesale price, or $3.20 per item In Committee
Idaho Proposal:  Increase cigarette tax by $1.25 per pack to $1.82 per pack Proposal, No Actual Bill Introduced
Maryland

S526: Increase cigarette tax by $1.00 per pack to $3.00 per pack; increase OTP tax from 15% to 95%, increase OTP tax to 95% with a cap of $3.00 tax maximum for cigars and moist snuff; increase RYO tax to 95% or $3.00 per 0.65 ounces

S631: Increase OTP tax from 15% to 70%; increase moist snuff tax to 70% or $3.00 per 1.2 ounces

In Committee

 

 

In Committee
Minnesota SF1916: Increase cigarette tax by $1.29 per pack to $2.52 per pack; increase OTP tax by 25% to 95% In Committee
Mississippi

HB307: Increase cigarette tax by $.06 per pack to $.74 per pack

BH308: Increase cigarette tax by $.04 per pack to $.72 per pack, increase OTP tax from 15% to 22.5%

In Committee

In Committee
Missouri SB638, HB1478, HB1486, and HB1652 to increase the cigarette tax to $.43 per pack, $.89 per pack, $.33 per pack, or $.33 per pack over four years, respectively.  HB1478 would also increase the OTP tax to 15% and the RYO tax to 25% Introduced
Nebraska LB436: Increase cigarette tax by $1.35 per pack to $1.99 per pack, increase OTP from 20% to 65% Introduced in 2010 session; in Committee
New Hampshire Governor’s Budget Proposal:  Restore $.10 per pack cigarette tax reduction enacted in 2011 Proposal
New Jersey A1076/S734: Increase tax on little cigars to be equal to cigarette tax of $2.70 per pack In Committee
New Mexico H133: Increase OTP tax from 25% to 57% In Committee
New York Governor’s Budget Proposal: Tax loose tobacco at same rate as cigarettes for a tax of $4.53 per ounce In Committee
Ohio SB250: Increase OTP tax from 17% to 55%, include dissolvable tobacco products as OTP products In Committee
Rhode Island

HB7323: Increase cigarette tax by $.04 per pack to $3.50 per pack and increase cap on cigar tax from $.50 per cigar to $1.00 per cigar

HB7639: Reduce cigarette tax by $.10 per pack from $3.46 per pack to $3.36 per pack.

In Committee

 

In Committee
Virginia HB160: Increase cigarette tax by $1.15 per pack to $1.45 per pack, and increase RYO tax from 10% to 50%. In Committee
Washington SB6166: Increase cigarette tax by $1.00 per pack to $4.025 per pack In Committee
West Virginia S586: Increase cigarette tax by $1.00 per pack to $1.55 per pack, and increase OTP tax from 7% to 50%. Introduced

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