Of the 23 states in which bills have been introduced during the 2012 legislative session to increase cigarette and/or other tobacco product taxes, to date three state legislatures have passed higher cigarette and/or OTP tax rates. These three states enacting higher cigarette taxes this year include:
- Illinois: Legislature passed a $1.00 per pack cigarette tax increase effective June 24, 2012, raised the OTP tax to 36% effective July 1, 2012, changed taxation on moist smokeless tobacco to a weight-based rate of $.30 per ounce effective January 1, 2013, and included little cigars in the definition of cigarette to tax little cigars at the $1.98 per pack cigarette tax rate effective July 1, 2012. The bill does not assess a floor stocks tax on retailers.
- Maryland: A bill passed in a special legislative session held in May increases the tax on cigars, excluding premium cigars, from 15% to 70%. Also, the tax rate on all other tobacco products, including pipe tobacco, increases from 15% to 30%. The tax increases are effective July 1, 2012.
- Vermont: A bill enacted into law and effective on or around May 15, 2012 changed the definition of little cigars to fall within the category of cigarettes and be taxed like cigarettes at $2.62 per pack.
Click on File Attachments below for a summary of the status of the cigarette and OTP tax bills in other state legislatures.
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