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Tobacco

More States Enact Higher Tobacco Taxes

Seven states have raised cigarette, OTP or e-vapor tax rates

MINNEAPOLIS -- In 2014, only one state, Vermont, raised cigarette or tobacco product tax rates. However, in 2015, there has been an increase in the number of states that have passed into law not only higher cigarette and tobacco taxes, but new taxes on e-cigarettes and liquid nicotine. Tobacco Taxes

Connecticut enacted a cigarette tax increase of 25 cents per pack for two years with the first 25 cents per pack increase going into effect on October 1, 2015, and the second 25 cents per pack increase taking effect on July 1, 2016. The new cigarette tax rate as of October 1, 2015, will be $3.65 per pack and the tax as of July 1, 2016, will be $3.90 per pack.

In Kansas, a 50 cents per pack cigarette tax increase takes effect today, July 1, 2015. The new cigarette tax rate as of July 1is $1.29 per pack.

The Louisiana legislature considered several bills with different cigarette tax increases and the final outcome was a 50 cents per pack cigarette tax increase, which goes into effect today. The new cigarette tax rate as of July 1, 2015, is 86 cents per pack. Also, a new tax of 5 cents per milliliter of liquid nicotine was also enacted for e-cigarettes and e-vapor products.

In Nevada, the legislature passed and the governor signed into law a $1.00 per pack cigarette tax increase effective July 1, 2015. The new cigarette tax rate is $1.80 per pack.

After considering several different tax increase rates, the Ohio legislature passed and the governor signed into law a 35 cents per pack cigarette tax increase effective July 1, 2015. The new cigarette tax rate is $1.60 per pack.

In Rhode Island, a 25 cents per pack cigarette tax increase was enacted and becomes effective on August 1, 2015. The new cigarette tax rate on August 1will be $3.75 per pack.

Finally, the Vermont legislature raised the state’s cigarette tax by 33 cents per pack for a new tax rate of $3.08 per pack effective July 1.

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