Articles Comments

» Entries tagged with "Cigarette taxes"

Tobacco tax hike would help budgets

State agencies that are funded out of Alabama’s General Fund budget are hurting, and that means the services provided by those agencies — including Medicaid and the state’s program that provides health insurance for children living in poverty — soon could be hurting as well. But there is a way to avoid some of the worst effects of those budget problems without dramatically affecting the state’s economy and while making the state much healthier over time — by raising the state’s taxes on cigarettes and other tobacco products. The need is real. “It’s the most catastrophic budgetary time in the General Fund we’ve ever had in Alabama,” Gov. Robert Bentley said Friday. Bentley said that it is likely the current General Fund budget will have to be cut through proration by as much as … Read entire article »

Filed under: Cigarette taxes

Tribal Cigarette Tax Delay Continues

Rulings by two federal judges will continue to prevent the state of New York from collecting taxes on some Indian cigarette sales while tribes continue their legal fight against an issue that has caused tension for decades, reported the Associated Press. But Governor David Paterson’s administration said Friday the state is closer than ever to settling the issue after one of the judges confirmed the state’s right to tax reservation cigarette sales to non-Indian customers and said doing so would not infringe on tribal sovereignty. “It’s time for decades of court battles to come to an end,” Paterson spokesperson Morgan Hook said. U.S. District Judge Richard Arcara on Thursday denied the Seneca and Cayuga Indian Nations’ request for a preliminary injunction against the tax, saying it was unlikely that the western New York … Read entire article »

Filed under: Cigarette taxes

Doctors group back higher ‘sin’ taxes for tobacco, alcohol

The Philippine Medical Association (PMA) through its President Oscar D. Tinio, M.D. expressed full support to President Benigno Aquino III’s call for higher ‘sin’ taxes to generate additional tax revenue for the government. This came following the PMA’s issuance of a nationwide resolution prohibiting medical practitioners from smoking over the weekend. President Aquino had earlier said he favors an increase in taxes for tobacco products and alcohol, adding that it wouldn’t harm lovers of tobacco or alcohol if they have to pay more in the future because this would be employed to reduce the consumption of something socially unwanted. The government has yet to make its stance clear about the sin tax but health officials claim that sin tax would substantially diminish consumption of cigarettes and spirits. “The Philippine Medical Association (PMA) believes that … Read entire article »

Filed under: Cigarette taxes

July 1 -increase of cigarette taxes in 5 states

To reduce smoking and combat budget deficits, five states will implement cigarette tax increases on July 1. The five states are: New York, $1.60 increase to $4.35 per pack; Hawai’i, 40 cents to $3 per pack; New Mexico, 75 cents to $1.66 per pack; South Carolina, 50 cents to 57 cents per pack; and Utah, $1 to $1.70 per pack. On May 1, Washington increased its cigarette tax by $1 to $3.025 per pack. New York’s increase will give it the highest state cigarette tax at $4.35 per pack, while South Carolina’s increase – its first since 1977 – means it will no longer have the lowest cigarette tax in the nation. Missouri will now have the lowest cigarette tax at just 17 cents a pack.  After the July 1 increases, the average … Read entire article »

Filed under: Tobacco news

The taxes on cigarettes keep climbing

Thursday, the state’s tax on cigarettes climbs to 57 cents a pack from its current 7 cents a pack.Smokers can expect to cough up an additional $5 a carton.Residents, retailers and health care advocates are split on the whether the increased tax, which will help pay for health care for the state’s poor, cancer research and smoking prevention and cessation programs, is a good thing. “They should raise it to $10 per pack,” said Richard Lee, 58, as he manned the office at his auto repair shop, Richard’s Automotive, in West Columbia.Lee points to a wall photo of himself and his brother who had a portion of a lung removed after years of smoking. Lee’s father and another brother died of lung cancer.“Every bit they raise, it will keep people from … Read entire article »

Filed under: Tobacco news

Quebec police targeting Cigarillo network

Police in Quebec executed a series of raids targeting two contraband cigarillo networks on Wednesday.More than 200 officers from the RCMP, provincial and local police raided 22 convenience stores, 16 homes, 13 vehicles and some smoke shacks in the Montreal area, Laval, Victoriaville, Lachenaie and Pincourt.Sixteen people were arrested and are expected to face charges including fraud, conspiracy and concealment.The owners of the targeted convenience stores will face sanctions under tobacco tax laws. Police do not believe the network is linked to organized crime.The contraband was supplied by distributors in the Tyendinaga Mohawk Reserve near Belleville, Ont., police allege.No sales tax was collected on the tobacco, police said.The stores had to order a certain number of legal cigarillos in order to help camouflage the purchase of the products, police said.Customers of … Read entire article »

Filed under: Uncategorized

South Carolina Cigarette Tax Won’t Supply Projected Revenue

The South Carolina Legislature voted to override the Governor’s veto, and raised the state’s cigarette tax by more than 700% to 57 cents per pack.  The maneuver is touted as a way to reduce smoking, particularly among youth, and as a major new revenue source for the state government.  Unfortunately, it cannot do both effectively, and as such, it is more likely to burden the state than aid its struggling finances. Smoking_cigarettes in the bed The South Carolina government has made a fatal mistake.  They’ve already allocated $136,000,000 in supposed cigarette tax revenues for FY2010, but the new tax will likely fall far short of that projection.  Given the FY2009 sales of 380.8 million packs and an implementation date of July 1, to arrive at $136 million, the state must assume … Read entire article »

Filed under: Cigarette taxes