Lung Association Prediction Holds as More States Increase Their Cigarette Taxes

American Lung Association
Wednesday, 24 April 2002

A new American Lung Association survey of state legislative action thus far in 2002 shows that five states have raised their cigarette excise taxes, including three that approved taxes of $1 or more per pack. Other states are considering similar tax hikes.

"Earlier this year, I predicted that cigarette taxes of $1 or more per pack would soon be the norm rather than the exception. We are clearly gaining on that goal," said John L. Kirkwood, President and CEO of the American Lung Association. His prediction was made at a February 25 news conference held in Washington, DC, by major U.S. health groups urging states to enact significant increases in their tobacco taxes.

Cigarette excise tax increases will increase this year in New York (increased to $1.50 per pack, effective April 3); Connecticut ($1.11, effective April 3); Utah (69.5 cents, effective July 1); Maryland ($1.00, effective July 1); and Nebraska (66 cents, effective October 1).

As of January 1, 2002, six states already had taxes of $1 or more per pack. They were: Washington ($1.425); New York ($1.11); Alaska ($1.00); Hawaii ($1.00); Maine ($1.00); and Rhode Island ($1.00). The current national average for state cigarette excise tax is 48.2 cents per pack, up from 44.6 cents in 2001.

"Eight states now tax cigarettes at one dollar or more per pack," said Kirkwood. "That's great news because we know that increasing the price of cigarettes is an effective way to discourage smoking and prevent kids from starting to smoke."

In a number of states, legislatures are still in session and continue to consider tobacco tax hikes. Seven states are debating increases that would put their tobacco taxes above $1 per pack. Those states are: California (proposed increase to $1.52); Hawaii ($2.00); Massachusetts ($1.26); Minnesota ($1.08);New Jersey ($1.30); Rhode Island ($1.27) and Vermont ($1.11). Other states are considering tax increases that are significant but would not yet push them beyond the $1 mark.

"A simple, politically viable and fiscally smart solution to the public health crisis created by tobacco use exists in the form of higher excise taxes on cigarettes and other tobacco products," said Kirkwood.

"Clearly, a growing number of states are recognizing the benefits of significant increases in their tobacco taxes," said Kirkwood.

"Our message to every governor and state legislator in this country is this: If you want to keep kids from smoking, motivate adults to stop, fund comprehensive tobacco-control programs, trim future health care costs and raise new dollars to plug gaping budget holes, then increase your tobacco excise taxes. Everyone wins with that formula," said Kirkwood.

The tobacco tax survey comes as a follow up to the American Lung Association's annual report on state tobacco laws, State Legislated Actions on Tobacco Issues 2001.

For more information, or to contact American Lung Association, see their website at: www.lungusa.org