Connect with us

Hi, what are you looking for?


Times Daily: Cigarette tax hike

Staff Report

In an effort to soften a looming budget crisis in Alabama, two lawmakers are trying to raise state cigarette taxes by up to $1 a pack.

In a state that ranks near the bottom in property taxes and near the top in sales and grocery taxes, it might be asking too much to expect any common sense when it comes to tobacco taxes.

Indeed, Alabama has the fifth lowest cigarette tax in the nation, at 42.5 cents per pack, according to the American Lung Association. Meanwhile, the percentages of adults and high school students in Alabama who smoke are above the national average.

Two Democratic state legislators have filed bills to raise cigarette taxes in the upcoming legislative session, according to The Birmingham News. Their stated goals are to help soften a $400 million shortfall in the next General Fund budget.

Rep. Patricia Todd, D-Birmingham, wants to raise the tax by 32.5 cents per pack. This would add an estimated $75 million to annual state tax revenues. Rep. Joe Hubbard, D-Montgomery, wants to raise the tax by $1 a pack, meaning an estimated $230 million in additional revenue.

This would mean a total state cigarette tax of 75 cents under Todd’s proposal or $1.425 under Hubbard’s plan. The national median for state cigarette taxes is $1.29, but state taxes range up to $4.25 per pack.

Advertisement. Scroll to continue reading.

Read More…

The Alabama Political Reporter is a daily political news site devoted to Alabama politics. We provide accurate, reliable coverage of policy, elections and government.

More from APR


Officials exchange tax breaks for long-term benefits, but the state does so without letting taxpayers know as much as other states do.


Between 1993 and 2020, Alabama lawmakers gave away more than $4 billion in subsidies to corporations.


Friday, the Alabama Medical Cannabis Study Commission voted to recommend legislation that would legalize marijuana for persons with diagnosed medical conditions. The commission voted...


Saturday, the Alabama Democratic Party State Democratic Executive Committee (SDEC) met in Montgomery and re-elected Nancy Worley as chairwomen. Many Democrats, including large numbers...