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VA Approves Cigarette Tax Hike [05/10-2]

Excerpts from: Va. OKs Budget With Cigarette Tax Hike

Newsday [05/07/04]

Virginia's Legislature overwhelmingly approved a nearly $60 billion budget on Friday, including a more than tenfold increase in the nation's lowest cigarette tax.

The agreement ended an unprecedented 115-day impasse, the longest continuous legislative meeting in the modern history of Virginia.

The budget's $1.4 billion tax hike includes a cigarette tax increase from 2.5 cents a pack to 20 cents this year and to 30 cents in 2005.

Virginia ranks fourth nationally in tobacco production and Richmond is home to Philip Morris USA and the world's largest cigarette factory.

Warner, a Democrat, had sought higher cigarette taxes and other tax increases to balance a projected $1.2 billion budget shortfall.


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