State Cigarette and Tobacco Tax Increase Update

Published in Tobacco E-News

By  Thomas A. Briant, Executive Director

With some state legislatures having already convened their 2013 legislative sessions and other states scheduled to begin their legislative sessions in the coming weeks, below is a listing of those legislative bills that seek to increase cigarette or tobacco tax rates.

Those bills designated as "pre-filed" means that the bill has been filed before the state legislature officially begins its 2013 legislative session. This update does not include unofficial media announcements that various state governors may propose to raise cigarette or tobacco tax rates as a part of a state budget plan.

Alabama: House Bill No. 15 (pre-filed); increases the state cigarette tax rate by $.325 per pack to a new rate of 75 cents per pack.

Florida: Senate Bill No. 252 (pre-filed); imposes a fee of 2.6 cents per cigarette ($.52 per pack) on cigarettes manufactured by non-settling cigarette manufacturers.

Kentucky: House Bill No. 139 and House Bill No. 140; increases the state cigarette tax by 40 cents per pack to a new rate of $1 per pack and imposes a tax on cigarette rolling papers at a rate of 25 cents per pack of 32 papers or a proportionate tax on cigarette rolling papers with fewer or more papers than 32 per pack. Also, the Kentucky Tax Reform Commission has recommended a 60 cents pack increase in the state's cigarette tax rate.

Minnesota: House Bill No. 91; repeals, the state cigarette and tobacco health impact fees, increases the state cigarette tax rate to a new rate of $2.83 per pack, increases the OTP tax rate to 95% of the wholesale price, taxes roll-your-own cigarette tobacco at $2.83 per ounce or $45.28 per pound, raises the non-participating manufacturer fee on cigarettes from 35 cents per pack to 50 cents per pack, assesses a tax of $2.83 on each container of moist snuff, changes the tax on little cigars that weigh more than 4.5 pounds per 1,000 and have an integrated cellulose acetate filter to the cigarette tax rate of $2.83 per pack of 20 little cigars, and imposes a floor stocks tax on wholesalers and retailers.

Mississippi: House Bill No. 119; changes existing tax law to tax moist snuff at a rate of 39 cents per ounce.

Missouri: Senate Bill No. 31; increases the state cigarette tax rate by 26 cents per pack for a new rate of 43 cents per pack.

Oklahoma: House Bill No. 1066; increases the state cigarette tax rate by 10 cents per pack to a new rate of $1.13 per pack.

Oregon: Bill No. D-1249; increases the state cigarette tax rate by 64.25 cents per pack to a new rate of $1.8225 per pack.