CONCORD - New Hampshire could face a higher tobacco tax, if the Senate approves the House??s proposed raise of 20 cents, the Associated Press reports. The 20-cent hike is 10 cents less than Gov. Maggie Hassan proposed in her budget.

The increase would bump the cigarette tax to $1.88. Currently, the $1.68 per pack cigarette tax would rise to $1.78 automatically if the legislature does nothing. The 20-cent increase would also be applied to other tobacco products.

House Ways and Means Chairwoman Susan Almy said the higher tax would fund state services and also serve as a discouragement to teen smoking. Meanwhile, the governor said she would push for a 30-cent jump in tobacco taxes. "We want to make sure we have the revenues we need to address our priorities, so I will continue to talk with the House and Senate about that," said Hassan.

Each 10-cent raise generates $10 million annually. Even if the tax is increased 20 cents, New Hampshire will still have a lower tax rate than border states because the Granite State has no general sales tax. In 2011, lawmakers slashed the tobacco tax by a dime to spur sales from non-residents, but that decrease was tied to revenue not decreasing, which it has.