Tobacco

Vermont Senate Rejects $1-a-Pack Tax Hike on Cigarettes

Missouri lawmaker calls for 81-cent cigarette tax increase
MONTPELIER, Vt. -- Vermont lawmakers have snuffed out a proposed $1-a-pack boost in the state tax on cigarettes, reported the Associated Press. After giving preliminary approval last Thursday to a state budget that relies partly on revenue from it, the Vermont Senate voted 16 to 14 to defeat the tax.

Supporters claimed that the tax would have raised $9 million annually.

Critics said boosting the tax by that much would send smokers to New Hampshire to buy cigarettes and would stop the flow of New Yorkers who come to Vermont to buy cigarettes.

Currently, the [image-nocss] Vermont state tax on a pack of cigarettes is $2.24.

Separately, in Jefferson City, Mo., a Missouri House member wants to ask voters to raise the state cigarette tax by 81 cents a pack, said AP. Chris Kelly (D) outlined his plan last Thursday to a House committee.

He is proposing a statewide vote on whether to raise Missouri's current 17-cent tax--now the lowest in the nation--to 98 cents per pack. Kelly said the increase could generate $425 million in state revenue, discourage people from smoking and bring down state health care costs.

Officials from Missouri's convenience store industry said raising the tax would hurt their business and that Missouri's cigarette tax rate gives it an advantage over nearby states with higher rates.

Voters rejected tobacco tax proposals in 2002 and 2006.
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