Tobacco

Tax Rate Update

Eight states do not pass tax increases.

Despite more than 20 state legislatures considering bills to raise the tax rate on cigarettes and/or other tobacco products (OTP), so far bills to raise state cigarette taxes have either been defeated or not enacted due to the legislature adjourning. In addition, legislation to increase the tax on other tobacco products has been defeated or not enacted in four states.

Those states in which a cigarette and/or OTP tax increase has not been enacted include:
Kentucky: $1.06/pack cigarette tax increase, and a 12.5% OTP tax increase Mississippi: $.50/pack cigarette tax increase [image-nocss] Montana: $1.50/pack cigarette tax increase Nevada: $.90/pack and $1.20/pack cigarette tax increases, and 25% and 30% OTP tax increases North Dakota: $.41/pack cigarette tax increase Vermont: $1.00/pack cigarette tax increase Virginia: $1.15/pack cigarette tax increase, and a 40% OTP tax increase West Virginia: $1.00/pack cigarette tax increase, and a 43% OTP tax increaseNATO staff has been assisting retail members in opposing each of these tax increases, including most recently the $1.00 per pack tax increase in Vermont. In that state, NATO assisted retail members, including Cumberland Farms stores, with sending letters to Vermont senators opposing the $1.00 tax hike because of the potential reduction in sales and loss of jobs, due to neighboring states with lower cigarette tax rates. In response, the Vermont Senate voted down the $1.00 cigarette tax increase just last week.

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