STATE CIGARETTE EXCISE TAX RATES

1
STATE CIGARETTE EXCISE TAX RATES RANKINGS

• All States' Average 91.7 cents per pack
• Major Tobacco States' Average 25.7 cents per
  pack
• Other States' Average 100.5 cents per pack

2
Recent Cigarette Tax Increases
WASHINGTON 202.5
MONTANA 170
MAINE 200
NORTH DAKOTA 44
VT119
MINNESOTA 123
OREGON 118
VT
IDAHO 57
NH 80
WISCONSIN 77
SOUTH DAKOTA 53
NEW YORK 150
MA
MA151
WYOMING 60
RI246
MICHIGAN 200
CT
CT151
IOWA 36
PENNSYLVANIA 135
NJ240
NEBRASKA 64
NEVADA 80
OHIO 125
DELAWARE55
UTAH 69.5
IN 55.5
ILLINOIS 98
WV 55
30 VIRGINIA
MARYLAND100
COLORADO 84
KANSAS 79
MISSOURI 17
DC100
87
KENTUCKY 30
CALIFORNIA
NORTH CAROLINA 30
TENNESSEE 20
OKLAHOMA 103
ARKANSAS 59
ARIZONA 118
NEW MEXICO 91
SOUTH CAROLINA 7
GEORGIA 37
ALABAMA 42.5
MS 18
TEXAS 41
36 LOUISIANA
ALASKA 160
FLORIDA 33.9
HAWAII 140
States that have recently passed or implemented a
cigarette tax increase (since 1/1/2002)
Oregon actually decreased its cigarette tax by 10
cents on 1/1/04. The second phase of the North
Carolina tax increase (an additional 5-cents)
will be effective 7/1/06, bringing the NC tax to
35 cents per pack.

3
We Can Prove It

• 1 Fewer Kids SmokingEvery 10 increase in the
  price of cigarettes will reduce youth smoking by
  about 7 and overall cigarette consumption by
  about 4.
• 2 Higher Revenue for StatesEvery state that
  has significantly increased its cigarette tax has
  enjoyed substantial increases in revenue, even
  while reducing smoking.
• 3 Public Support for Tobacco TaxesThere is
  overwhelming public support for tobacco tax
  increases among Democrats, Republicans and
  Independents alike.

4
Tobacco User Fee Campaign

• Legislative Session 2003

A Win for GATP!
5
Strategic Planning December 2002

• Strategic Planning and Resource Meeting
• Editorial Board Meetings scheduled
• Lobbying Packets developed
• Grassroots plan developed
• Meetings with Governor, House and Senate
  Leadership

6
Kick Off January

• Governor Perdue introduces the budget
• 46 cent tobacco user fee increase
• GATP holds the budget response press conference
• Editorial endorsements start rolling in due to
  editorial board visits
• 32 endorsements or positive editorials from every
  major paper in the state
• GATP kicks off the letter writing grassroots
  effort
• 25 organizational letters to Governor Perdue
• 1500 postcards to legislators
• 7 organizational letters to Ways and Means
  Members
• 5 organizational letters to all House and Senate
  members

7
All Systems Go - February

• We have a bill!! HB 379 sponsor Glenn
  Richardson
• Governor Perdue introduces legislation (after
  much hand wringing!)
• Holds press conference on 2/19 - GATP builds
  crowd of over 200
• Weekly meetings with Governors staff begin
• Lobby Days
• GATP Days on Feb 4 and 19 over 100 people
  attended and reached over 50 legislators
• PTA, Heart, Dental, Medical Alliance, GA Council
  on Substance Abuse all hold lobby days with
  tobacco user fee as a top issue
• Letters to the Editor
• Over 150 generated and 29 printed over the course
  of the campaign
• Coalition Lobbyist Efforts
• Weekly meetings
• Weekly issue paper distribution
• Seamless messaging

8

• Phone and Mail Plan Executed
• 27,000 supporters identified across the state
• 37,000 supporters and undecided mailed issue piece

9
Governors Tour - March

• Governor launches statewide tour to address the
  budget and tobacco tax
• GATP instrumental in crowd building and advocacy

Gainesville Duluth Augusta Columbus Macon Valdost
a Savannah Dalton Newnan Tifton Marietta
10
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11
Campaign Heats Up - March

• HB 379 clears House Ways and Means. but with no
  recommendation
• 30 GATP members showed up to testify but werent
  heard
• Lynn Westmoreland pulls his support of the
  increases
• GATP new action alert developed and activated
• 370 letters generated to 102 targets
• Action alert network grown by 230 members after
  one alert
• HB 379 defeated in the House 47 to 127 on 3/26
• HB 379 wins reconsideration 144-29 on 3/27
• Resolution signers grow to over 400 organizations

12
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April 8 the 33rd DayDay of Doom and Gloom

• House leadership does not bring up HB 379 for a
  vote
• The House passes a budget calling for a tobacco
  tax increase to fill a 128 million shortfall
• Senate leadership proposed filling the budget
  with quick fixes and passes a spending plan
  without a tax increase
• Sales tax proposed as a serious possibility

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(No Transcript)
15
Final Stretch to Victory

• HB 379 passes the House by a vote of 91-84
• Senate refuses to suspend the 33rd Day rule
• HB 43 (an omnibus tax bill) becomes the vehicle
  for the tobacco tax increase
• GATP Action Alert generates another 400 letters
• Network grows to 1750 members
• Numerous coalition partners generate action
  alerts and press conferences of their own
  highlighting potential cuts to healthcare
  education
• Newspapers across the state call for the passage
  of the tobacco tax increase
• 1500 patch through calls made to Senate and Black
  Caucus members

16
(No Transcript)
17
Victory on April 25!!

• HB 43 passes the House by a vote of 116-47
• HB 43 passes the Senate by a narrow vote of 30-26
• HB 43 increases the tax on cigarettes by 25
  cents, establishes a new 10 wholesale tax on
  smokeless tobacco products, and increases the
  wholesale tax on cigars by 10
• Governor Perdue must now decidewhether or not to
  call a specialsession which would allow GATPto
  push for increasing the userfees further

AP 
18
Postscript - Georgia .12 to .37 on 7/1/03
Packs Sold
Revenue
-15.1
170.2
19
Georgia Tobacco Tax Revenues

• 2003 109,264,564
• 2004227,549,4062005 249,070,470
• 2006 (estimated) 252,906,200
• 2007 (estimated)257,458,500
• State tobacco tax revenues are more predictable
  and stable than state income tax or corporate tax
  revenues, which can decline sharply because of
  unexpected economic recessions.

20
The Real Winners

• for the first time, Georgias smoking rate is
  below the national average.
• high school age smoking rate is 20.9 (104,600),
  the
• national average is 22

21
SOUTH CAROLINA
CIGARETTE TAX BASELINE
Key findings from a South Carolina statewide
survey of 500 likely voters, conducted January
17 and 19, 2006
Glen Bolger and Nicole McCleskey
glen_at_pos.org
Project 06065
22
The ONLY acceptable proposal to raise
additional revenue for the state is raising the
state cigarette tax.
Proposals Ranked By Strongly Favor
71
57
Increase the state cigarette tax
27
19
34
15
Increase the state sales tax
64
48
29
15
Reduce funding for state colleges
and universities
70
46
25
Reduce funding for Medicaid services,
15
which provides health care services for
74
50
lower income South Carolinians
12
20
Reduce funding for K-12 education
65
78
6
18
Increase the state income tax
78
58
Strongly Favor
Somewhat Favor
Strongly Oppose
Somewhat Oppose
23
Interestingly, while support for a cigarette tax
increase extends across partisanship, its
Republicans who are the most supportive
Increase the State Cigarette Tax Proposal by
Party
60
55
15
24
40
80
77
69
61
56
41
37
29
22
20
Base GOP
Soft GOP
Ind
Soft Dem
Base Dem
(28)
(19)
(12)
(15)
(25)
Total Favor
Total Oppose
24
Voters strongly support the 93-cent tax
increase. Intensity for the 53-cent increase
actually drops off.
Would you favor or oppose a 93-cent per pack
Would you favor or oppose a 53-cent per pack
increase in the state cigarette tax, with part of
the
increase in the state cigarette tax, with part of
the
revenue dedicated to a program to reduce tobacco
revenue dedicated to a program to reduce tobacco
use, particularly among kids, and the rest of the
use, particularly among kids, and the rest of the
revenue dedicated to funding Medicaid and other
revenue dedicated to funding Medicaid and other
health care programs?
healthcare programs?
Strongly
Strongly
Favor
Favor
50
56
DK/
DK/
Ref
Ref
2
3
Smwt
Strongly
Smwt
Favor
Oppose
Strongly
Favor
21
19
Oppose
Smwt
Smwt
15
19
Oppose
Oppose
8
7
25
Voters from every region strongly support the
93-cent cigarette tax increase.
93-Cent Tax Increase by Region
26
While non-smokers support the 93-cent tax
increase by a huge margin, even 47 of smokers
think its a good idea.
93-Cent Tax Increase by Smoker Status
54
-6
76
53
47
22
Non-Smokers
Smokers
(82)
(18)
Total Favor
Total Oppose
27
Voters say they will reward legislators who
support the 93-cent tax increase.
And, would you be more likely or less likely to
support a candidate for political office here in
South Carolina if they supported this 93-cent per
pack increase in the state cigarette tax with
part
of the revenue dedicated to a program to reduce
tobacco use, particularly among kids, and the
rest of the revenue dedicated to funding Medicaid
and other health care programs, or would this
make no difference to your vote one way or the
other?
Total More Likely
50
Much More
Total Less Likely
17
Likely
30
Smwt More
Likely
21
DK/Ref
1
Smwt Less
Likely
6
Much Less
No Difference
Likely
31
11
Denotes Rounding
28
Across party, voters will back a legislator who
supports the 93-cent increase.
Support for Legislators by Party
36
36
10
43
33
55
53
52
50
35
25
20
16
14
12
Base GOP
Soft GOP
Ind
Soft Dem
Base Dem
(28)
(19)
(12)
(15)
(25)
Total More Likely
Total Less Likely