Saturday, May 10, 2008

cigarette tax increases by 50 cents

The Senate spent the vast majority of their week debating H.3567 (Rice), legislation increasing the tax on cigarettes, which they had set for Special Order to be debated this week. H.3567 received second reading Wednesday afternoon and on Thursday received third reading. As amended, H.3567 increases the cigarette tax by 50 cents per pack, generating approximately $159 million in new revenue. Funds will go to expanding components of the State's Medicaid program, health insurance assistance for low income residents, and to the Smoking Cessation and Prevention Trust Fund. H.3567 was sent back to the House on Thursday afternoon.