An Update on State Tobacco Tax Legislation

NATO executive director provides the latest on taxation efforts at the state level

Published in Tobacco E-News

By  Thomas A. Briant, Executive Director

Almost two months into most state legislative sessions, 18 states are considering cigarette and other tobacco product (OTP) tax increases either introduced as bills or as a part of a governor’s budget proposal.  A brief summary of the states with tax proposals is as follows: 

StateBill Number; Proposed TaxStatus of Bill
Alabama

HB 9: Increase cigarette tax by $1.00 per pack to $1.425 per pack

HB27: Increase cigarette tax by $.325 per pack to $.75 per pack

HB244: Proposed amendment to state constitution to increase cigarette tax by $.325 per pack to $.75 per pack

In Committee

 

In Committee

 

In Committee

Florida

SB 1598: Impose a $.82 per ounce tax on roll-your-own (RYO) loose tobacco

SB 1842/HB 1049: Impose a surcharge of $.05 per cigarette equal to $1.00 per pack

In Committee

 

In Committee

HawaiiSB 2422: Increase OTP tax to more than 70% of wholesale price, or $3.20 per itemIn Committee
IdahoProposal:  Increase cigarette tax by $1.25 per pack to $1.82 per packProposal, No Actual Bill Introduced
Maryland

S526: Increase cigarette tax by $1.00 per pack to $3.00 per pack; increase OTP tax from 15% to 95%, increase OTP tax to 95% with a cap of $3.00 tax maximum for cigars and moist snuff; increase RYO tax to 95% or $3.00 per 0.65 ounces

S631: Increase OTP tax from 15% to 70%; increase moist snuff tax to 70% or $3.00 per 1.2 ounces

In Committee

 

 

In Committee

MinnesotaSF1916: Increase cigarette tax by $1.29 per pack to $2.52 per pack; increase OTP tax by 25% to 95%In Committee
Mississippi

HB307: Increase cigarette tax by $.06 per pack to $.74 per pack

BH308: Increase cigarette tax by $.04 per pack to $.72 per pack, increase OTP tax from 15% to 22.5%

In Committee

In Committee

MissouriSB638, HB1478, HB1486, and HB1652 to increase the cigarette tax to $.43 per pack, $.89 per pack, $.33 per pack, or $.33 per pack over four years, respectively.  HB1478 would also increase the OTP tax to 15% and the RYO tax to 25%Introduced
NebraskaLB436: Increase cigarette tax by $1.35 per pack to $1.99 per pack, increase OTP from 20% to 65%Introduced in 2010 session; in Committee
New HampshireGovernor’s Budget Proposal:  Restore $.10 per pack cigarette tax reduction enacted in 2011Proposal
New JerseyA1076/S734: Increase tax on little cigars to be equal to cigarette tax of $2.70 per packIn Committee
New MexicoH133: Increase OTP tax from 25% to 57%In Committee
New YorkGovernor’s Budget Proposal: Tax loose tobacco at same rate as cigarettes for a tax of $4.53 per ounceIn Committee
OhioSB250: Increase OTP tax from 17% to 55%, include dissolvable tobacco products as OTP productsIn Committee
Rhode Island

HB7323: Increase cigarette tax by $.04 per pack to $3.50 per pack and increase cap on cigar tax from $.50 per cigar to $1.00 per cigar

HB7639: Reduce cigarette tax by $.10 per pack from $3.46 per pack to $3.36 per pack.

In Committee

 

In Committee

VirginiaHB160: Increase cigarette tax by $1.15 per pack to $1.45 per pack, and increase RYO tax from 10% to 50%.In Committee
WashingtonSB6166: Increase cigarette tax by $1.00 per pack to $4.025 per packIn Committee
West VirginiaS586: Increase cigarette tax by $1.00 per pack to $1.55 per pack, and increase OTP tax from 7% to 50%.Introduced