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December 2006

News & Media

South Carolina Governor Prposes Cigarette Tax Hike 
December 18, 2006 

COLUMBIA, S.C. -- A move is afoot to increase the cigarette excise tax in South Carolina, which currently has the lowest per-pack cigarette tax in the country at 7 cents.

Gov. Mark Sanford announced last week his proposed 30 cent increase in South Carolina's cigarette tax. The Georgetown Times reports that the proposal will likely face a challenge from the House of Representatives, not only because of the tax hike itself, but because of what the governor wants to do with the money. Sanford proposes to use the additional revenue for income tax relief, while legislators want the use the revenue to fund healthcare programs.

Sanford has twice before tried to raise the cigarette tax, but each time his 60 cent per pack increase never made it through the House, in part because many legislators have made pledges to constituents not to approve any more tax increases.