Wash. State House Passes Tobacco Tax Cut [04/21-2]

Excerpts from: State House passes tobacco tax cut

THE ASSOCIATED PRESS [04/20/05]


The Legislature is relying on increased cigarette taxes to balance the state budget, but on Wednesday night the House passed a bill cutting taxes on other tobacco products.

The bill, which passed 79-19, reduces the tax on cigars, chewing tobacco and pipe tobacco from 129 percent of the retail price to 75 percent. It now goes to the Senate.

Supporters said the bill would actually increase revenue for the state, because right now many people are avoiding the state sales tax altogether by buying cigars and chew in other states or on the Internet.

Rep. Mike Armstrong, R-Wenatchee, said reducing the sales tax will yield an extra $8.6 million in state tax revenue over the next two years.

"The black market that's selling these tobacco products now should diminish, and legitimate owners of stores will benefit by that," Armstrong said.

But Rep. Rodney Tom, R-Medina, said lowering the sales tax will just make it easier for kids to buy chewing tobacco, which is growing in popularity even as cigarette smoking decreases among teens.

"It's kind of embarrassing," he said. "This is not good health care."

Tom said the state should address the real problem by outlawing tobacco sales over the Internet.

The budgets proposed by the House and Senate include a 60-cent-per-pack increase in the cigarette tax, currently $1.425. Legislative leaders are negotiating on a final budget that should be presented some time in the next few days.

This information is presented as a public service by:

Action on Smoking and Health (ASH)
2013 H Street NW / Washington, DC 20006 / (202) 659-4310
A national nonprofit, scientific and educational organization founded in 1967.
All donations are fully tax deductible.

Material on this page may be freely reproduced, distributed, and circulated
with attribution given to Action on Smoking and Health.

Dedicated to Mr. and Mrs. Warren Wells