Kansas Senate Tosses Cigarette Tax Hike

The proposal to add 55 cents per pack has been dropped from the state's budget proposal. Also, the Pennsylvania governor has placed a tax on smokeless tobacco and cigars on the table.

May 05, 2010

TOPEKA, Kan. - Kansas Senators have reconsidered which taxes to increase as they head to a floor debate on the state??s budget, the Kansas City Star reports. Last week, the Senate Ways and Means Committee approved a tax package with a 55-cents-per-pack cigarette tax hike, along with a penny state sales tax increase.

The new tax package, sans a cigarette tax hike, would bring in $350 million. In April, Kansas realized $65 million less in revenue collections, which made the legislature take a harder look at tax increases.

The Senate wants to craft a tax package that would garner the most support in both houses. Eliminating a tobacco tax increase would likely gather support of lawmakers from the border counties.

The new Senate plan has more federal funding involved, to the tune of $185 million. Kansas is facing a $500-plus million-budget shortfall. The full Senate could debate the budget and tax hikes by as early as today.

Meanwhile, Pennsylvania, also in the throes of budget woes, is considering tobacco tax increases. The Pittsburgh Post-Gazette reports that Gov. Ed Rendell has proposed several tax increases, including a tax on cigars and smokeless tobacco, which could generate $41 million in funds.

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