West Virginia Toys With Raising Tobacco Taxes

Alabama is also considering a bump in its tobacco taxes.

September 17, 2015

CHARLESTON — West Virginia, which has one of the lowest tobacco tax rates in the United States, might consider increasing tobacco excise taxes in an effort to offset the state’s dismal budget, the Bluefield Daily Telegraph reports. Currently, West Virginia has a 55-cent per pack tax on cigarettes.

“There’s room on the tobacco side,” for higher taxes, said state delegate Eric Nelson, who participated in a legislative session on alcoholic beverages, gambling and tobacco products. Nelson pointed out that any hike would include e-cigarettes, which are not subject to state tobacco taxes at present. “E-cigarettes are a growing segment that needs to be looked at. … We’re significantly below other states. It has become an issue,” he said.

Tobacco taxes in West Virginia have been declining for a while, as smoking rates dropped. Eleven years ago, the state cigarette tax generated $100.8 million. Today, it’s only $100.4 million. A mere $8 million of that comes from cigars and smokeless tobacco.

Meanwhile, the Alabama Senate opened debate on raising the tax on a pack of cigarettes by 25 cents, AL.com reports. The quarter jump in cigarette taxes would generate $66 million. An amendment to include e-cigarettes is still being debated in the state Senate. The Alabama House already approved a 25-cent tax increase on cigarettes. The Legislature’s special session is attempting to find money to fix a $200 million deficit in the state’s general fund.

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