Nebraska Senator to Introduce Cigarette Tax Hike Bill

Bill's aim is to discourage smoking while using the expected extra revenue to help fund state health-care programs.

January 06, 2011

HASTINGS, NE - Nebraska state Sen. Mike Gloor is planning to propose a bill in the upcoming legislative session to more than double the state's current tax on cigarettes, from 64 cents to $1.999, KHAS-TV reports.

Gloor said he's introducing the bill to discourage smoking while using the expected extra tax revenue to help fund state health care, which is facing substantial funding cuts.

The tax hike would also apply to cigars and other tobacco products, though it would exempt snuff.

Mac Rundle, manager of Midtowne Mart in Hastings, said tobacco increases have never affected his business (Nebraska last raised tobacco taxes in 2004, and the federal tax increased last in 2009).

"I think people who smoke will pay whatever it costs. They're not going to let any amount of money get in the way of smoking," Rundle said.

Gloor said the cigarette taxes in neighboring states are much higher than the one he is proposing, and as such, he doesn't anticipate border bleed affecting retailers.

Nebraska's 2011 legislative session got underway yesterday. There is no timeline for when Gloor plans to introduce the bill.

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