14 States, D.C. Increased Cigarette Excise Taxes in 2009

New revenue not dedicated to tobacco control; half of states also have minimum price laws
By Rick Ansorge
HealthDay Reporter

FRIDAY, April 9 (HealthDay News) -- Several states and the District of Columbia increased their cigarette excise taxes in 2009, and half of states now have minimum price laws for cigarettes, though new revenue is not being dedicated to tobacco control, according to two reports published in the April 9 issue of the U.S. Centers for Disease Control and Prevention's Morbidity and Mortality Weekly Report.

In one report, researchers found that 14 states and the District of Columbia increased their state cigarette excise taxes in 2009, resulting in a national average state excise tax increase from $1.18 per pack in 2008 to $1.34 per pack in 2009. None of the new revenue, however, was dedicated to tobacco control. The researchers also found that cigarette excise taxes ranged from a low of 7 cents per pack in South Carolina to a high of $3.46 per pack in Rhode Island.

A second report suggested that, in states with low cigarette excise tax rates, minimum price laws can potentially raise cigarette prices to a level that reduces youth initiation and adult consumption and induces tobacco users to quit. The report cites minimum price laws in 24 states and the District of Columbia which are intended to counteract manufacturer price manipulations such as discounts, coupons, and other promotions that may target youth and lower-income individuals.

"Cigarette excise tax increases reduce tobacco use and initiation," state the authors of a editorial on the first report. "A 10-percent increase in the price of cigarettes can reduce consumption by nearly 4 percent among adults and can have an even greater effect among youths and other price-sensitive groups. When combined with other evidence-based components of comprehensive tobacco control programs, cigarette excise tax increases can be even more effective in reducing tobacco-related death and disease."

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