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Three States Approve Increased Tobacco Taxes at the Ballot Box
Voters in Colorado, Montana and Oklahoma approved drastic increases in tobacco taxes on November 2nd, dedicating the extra revenue for improved health care in those states. All three previously had excise taxes on cigarettes below the national average of 78 cents a pack, but this will change for all as of the first of the year.
In Colorado, electors voted 53% to 47% to increase the tax from 20 cents to 84 cents a pack, a more than four-fold increase. Montana, whose 70 cent tax was already high for the region, added another dollar per pack to its excise tax to become a national leader. In Oklahoma, voters increased the tax from 23 to 78 cents, higher than all of its neighbors except Colorado.
"This is great news for public health," said Chris Bostic, General Counsel for Action on Smoking & Health, a DC-based nonsmokers' rights organization. "Tobacco taxes are one of the simplest and most effective tobacco control strategies we have in our arsenal."
In addition to the extra tax revenue raised, the excise tax increase will reduce consumption, particularly among children under 18. Studies have shown that a 10% increase in the retail price of cigarettes leads to a 4% overall drop in consumption, and a 7% reduction among youth.
"Furthermore, the drop in consumption will allow the three states to realize huge savings in future health care costs," Bostic added. "Tobacco kills about one in two long-term users. The additional taxes will reduce the consumption of those that smoke, give an additional incentive to many to quit, and keep thousands from ever taking up the habit."
The retail cost of a pack of cigarettes will still not approach its cost to society. Even conservative estimates put the societal cost at over $7 a pack when health care costs are considered. Many of these additional costs are borne by state and local taxpayers, even those that don't smoke.
Chris A. Bostic
General Counsel
Action on Smoking & Health
2013 H Street, NW
Washington, DC 20006
202-659-4310
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