Legislation > Tobacco Tax Increase

BILL NUMBER
AB 75 (State Budget): Tobacco Tax Increase
(Pages 77-78)

LEAD AUTHOR
Governor Doyle

DESCRIPTION
Governor Doyle's budget includes a 75 cent increase per-pack in the cigarette tax. The budget proposal also raises the maximum tax on cigars from 50 cents to 71 cents and the tax on moist snuff products from $1.31 per ounce to $1.87 per ounce. These provisions would take effect September 1, 2009.

ANALYSIS
Every study shows that raising the tobacco tax by a significant amount keeps kids from starting to smoke and helps smokers quit - especially subpopulations like pregnant women and low and moderate income smokers. On top of the health benefits from the recently passed federal cigarette tax increase of 61 cents, Wisconsin has the opportunity to prevent 33,000 additional kids who are alive today from becoming smokers and prompt 17,000 adult smokers to quit for good. Out of the $9.53 incurred in smoking-caused costs each time a pack of cigarettes is purchased in Wisconsin, our current tax rate per-pack is only $1.77.  In addition to adjusting tobacco tax rates, the 2009-2011 budget proposal also tightens restrictions on internet sales of tobacco to bring the regulation of the online sale of other tobacco products in line with the regulation of online cigarette sales.

STATUS
The Joint Finance Committee is expected to hold public hearings on the state budget in all regions of the state.  These dates have not yet been announced.

TAKE ACTION
Ask your legislators to support the 75 cent increase in the cigarette tax.