Cigarette Taxes Are 'Gold Rush' for States

Since last year, 22 states and the District of Columbia have increased or are considering increases to cigarette taxes.

March 29, 2010

MCLEAN, Va. - An article in Friday's USA Today detailed how "cash-strapped states" are raising cigarette taxes to help address budget deficits.

So far in 2010, Utah has voted to increase cigarette taxes by $1 per pack and New Mexico has added an increase of 75 cents per pack. At least six other states have considered tobacco tax increases, including South Carolina and Georgia. Last year, 14 states and the District of Columbia raised cigarette taxes. It's only the 10th time since 1950 that so many states have raised cigarette taxes during the same time period, according to the Centers for Disease Control and Prevention (CDC).

The average state cigarette tax is $1.34, with Rhode Island the highest ($3.46 per pack) and South Carolina the lowest (7 cents). The federal tax is $1.01 per pack.

Among other states considering cigarette tax increases:

  • Washington: $1 per pack increase (bringing the total to $3 per pack).
  • South Carolina: House lawmakers voted this month to increase the tax by 30 cents per pack; the Senate is considering the issue.
  • Georgia: $1 per pack increase (bringing the total to $1.37 per pack).
  • Kansas: 55 cents per pack increase (up from the current 79 cents per pack).

According to Terry Pechacek, associate director for science at the CDC's Office on Smoking and Health, for every 10% cigarette tax increase, consumption drops by 3% to 4% among adults and double that range among youth.

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