STATE CIGARETTE EXCISE TAX RATES RANKINGS

STATE CIGARETTE EXCISE TAX RATES & RANKINGS All States' Average: 91.7 cents per pack Major Tobacco States' Average: 25.7 cents per pack Other States' Average: 100.5 cents per pack Recent Cigarette Tax Increases WASHINGTON 202.5 OREGON IDAHO MONTANA 170 57 WYOMING NORTH DAKOTA 44 SOUTH DAKOTA MINNESOTA VT:119 VT MAINE 200 123 WISCONSIN 118 53 IOWA NEBRASKA 77 36 ILLINOIS MISSOURI NEW YORK MICHIGAN NH: 80 150 MA CT NJ:240 60 NEVADA 200 MA:151 RI:246 CT:151 PENNSYLVANIA 80 87 CALIFORNIA UTAH 64 COLORADO OHIO 135 WV IN 69.5 84 KANSAS 98 55.5 30 125 DELAWARE:55 MARYLAND:100 DC:100 79 OKLAHOMA 17 ARKANSAS KENTUCKY TENNESSEE 55 30 VIRGINIA NORTH CAROLINA ARIZONA 118 NEW MEXICO 91 TEXAS 103 20 30 59 MS SOUTH CAROLINA ALABAMA GEORGIA 7 ALASKA 36 18 42.5 37 160 HAWAII 41 140 LOUISIANA FLORIDA 33.9 States that have recently passed or implemented a cigarette tax increase (since 1/1/2002) Oregon actually decreased its cigarette tax by 10 cents on 1/1/04. The second phase of the North Carolina tax increase (an additional 5-cents) will be effective 7/1/06, bringing the NC tax to 35 cents per pack. We Can Prove It • #1: Fewer Kids Smoking Every 10% increase in the price of cigarettes will reduce youth smoking by about 7% and overall cigarette consumption by about 4%. • #2: Higher Revenue for States Every state that has significantly increased its cigarette tax has enjoyed substantial increases in revenue, even while reducing smoking. • #3: Public Support for Tobacco Taxes There is overwhelming public support for tobacco tax increases among Democrats, Republicans and Independents alike. Tobacco User Fee Campaign Legislative Session 2003 A Win for GATP! Strategic Planning – December 2002 • • • • • Strategic Planning and Resource Meeting Editorial Board Meetings scheduled Lobbying Packets developed Grassroots plan developed Meetings with Governor, House and Senate Leadership Kick Off – January • Governor Perdue introduces the budget – 46 cent tobacco user fee increase • GATP holds the budget response press conference • Editorial endorsements start rolling in due to editorial board visits – 32 endorsements or positive editorials from every major paper in the state • GATP kicks off the letter writing grassroots effort – – – – 25 organizational letters to Governor Perdue 1500 postcards to legislators 7 organizational letters to Ways and Means Members 5 organizational letters to all House and Senate members All Systems Go February • We have a bill!! – HB 379 sponsor: Glenn Richardson – Governor Perdue introduces legislation (after much hand wringing!) – Holds press conference on 2/19 - GATP builds crowd of over 200 – Weekly meetings with Governor’s staff begin • Lobby Days – GATP Days on Feb 4 and 19 – over 100 people attended and reached over 50 legislators – PTA, Heart, Dental, Medical Alliance, GA Council on Substance Abuse all hold lobby days with tobacco user fee as a top issue • Letters to the Editor – Over 150 generated and 29 printed over the course of the campaign • Coalition Lobbyist Efforts – Weekly meetings – Weekly issue paper distribution – Seamless messaging • Phone and Mail Plan Executed – 27,000 supporters identified across the state – 37,000 supporters and undecided mailed issue piece Governor’s Tour - March • Governor launches statewide tour to address the budget and tobacco tax – GATP instrumental in crowd building and advocacy Gainesville Augusta Macon Savannah Newnan Marietta Duluth Columbus Valdosta Dalton Tifton Campaign Heats Up March • HB 379 clears House Ways and Means…. but with no recommendation – 30 GATP members showed up to testify but weren’t heard • Lynn Westmoreland pulls his support of the increases • GATP new action alert developed and activated – 370 letters generated to 102 targets – Action alert network grown by 230 members after one alert • HB 379 defeated in the House 47 to 127 on 3/26 • HB 379 wins reconsideration 144-29 on 3/27 • Resolution signers grow to over 400 organizations April 8 – the 33rd Day Day of Doom and Gloom • House leadership does not bring up HB 379 for a vote • The House passes a budget calling for a tobacco tax increase to fill a $128 million shortfall • Senate leadership proposed filling the budget with quick fixes and passes a spending plan without a tax increase • Sales tax proposed as a serious possibility Final Stretch to Victory • HB 379 passes the House by a vote of 91-84 – Senate refuses to suspend the 33rd Day rule • HB 43 (an omnibus tax bill) becomes the vehicle for the tobacco tax increase • GATP Action Alert generates another 400 letters – Network grows to 1750 members • Numerous coalition partners generate action alerts and press conferences of their own highlighting potential cuts to healthcare & education • Newspapers across the state call for the passage of the tobacco tax increase • 1500 patch through calls made to Senate and Black Caucus members Victory on April 25!! • HB 43 passes the House by a vote of 116-47 • HB 43 passes the Senate by a narrow vote of 30-26 • HB 43 increases the tax on cigarettes by 25 cents, establishes a new 10% wholesale tax on smokeless tobacco products, and increases the wholesale tax on cigars by 10% • Governor Perdue must now decide whether or not to call a special session which would allow GATP to push for increasing the user fees further AP Postscript - Georgia .12 to .37 on 7/1/03 Packs Sold Revenue -15.1% 696.5 Million 800,000,000 +170.2% $250,000,000 $216.2 Million 591.5 Million $200,000,000 600,000,000 $150,000,000 400,000,000 $80.0 Million $100,000,000 200,000,000 $50,000,000 0 $0 7/02 - 6/03 7/03 - 6/04 7/02 - 6/03 7/03 - 6/04 Georgia Tobacco Tax Revenues 2003 =$109,264,564 2004=$227,549,406 2005 =$249,070,470 2006 (estimated) =$252,906,200 2007 (estimated)=$257,458,500 State tobacco tax revenues are more predictable and stable than state income tax or corporate tax revenues, which can decline sharply because of unexpected economic recessions. The Real Winners for the first time, Georgia’s smoking rate is below the national average. high school age smoking rate is 20.9% (104,600), the national average is 22% Key findings from a South Carolina statewide survey of 500 likely voters, conducted January 17 and 19, 2006 Project #06065 The ONLY acceptable proposal to raise additional revenue for the state is raising the state cigarette tax. Proposals: Ranked By % Strongly Favor 57% Increase the state cigarette tax 19% 15% 71% 27% 34% 48% 64% Increase the state sales tax Reduce funding for state colleges and universities Reduce funding for Medicaid services, which provides health care services for lower income South Carolinians Reduce funding for K-12 education 6% 15% 29% 46% 15% 12% 25% 70% 50% 20% 65% 18% 74% 78% Increase the state income tax Strongly Favor Strongly Oppose 58% Somewhat Favor Somewhat Oppose 78% Interestingly, while support for a cigarette tax increase extends across partisanship, it’s Republicans who are the most supportive “Increase the State Cigarette Tax” Proposal by Party +60% +55% +15% +24% +40% 80% 77% 69% 56% 41% 22% 61% 37% 29% 20% Base GOP (28%) Soft GOP (19%) Ind (12%) Total Favor Total Oppose Soft Dem (15%) Base Dem (25%) Voters strongly support the 93-cent tax increase. Intensity for the 53-cent increase actually drops off. “Would you favor or oppose a 53-cent per pack “Would you favor or oppose a 93-cent per pack increase in the state cigarette tax, with part of the revenue dedicated to a program to reduce tobacco use, particularly among kids, and the rest of the revenue dedicated to funding Medicaid and other health care programs?” increase in the state cigarette tax, with part of the revenue dedicated to a program to reduce tobacco use, particularly among kids, and the rest of the revenue dedicated to funding Medicaid and other healthcare programs?” Strongly Favor 50% Strongly Favor 56% Total Favor: 71% Total Oppose: 27% Total Favor: 71% Total Oppose: 26% DK/ Ref 2% DK/ Ref 3% Smwt Favor 21% Smwt Favor 15% Smwt Oppose 8% Strongly Oppose 19% Smwt Oppose 7% Strongly Oppose 19% Voters from every region strongly support the 93-cent cigarette tax increase. Upstate (36%) Strongly Favor Total Favor Total Oppose Strongly Oppose 56% 75% 24% 18% Oconee 93-Cent Tax Increase by Region Cherokee Greenville Spartanburg Pickens Union Anderson Laurens Fairfield Kershaw Lee Dillon Chester Lancaster Chesterfield Marlboro York Midlands (29%) Strongly Favor Total Favor Total Oppose Strongly Oppose 55% 65% 33% 22% Abbeville Greenwood Newberry Darlington Marion Florence Horry Saluda McCormick Richland Lexington Sumter Edgefield Pee Dee (16%) Strongly Favor Total Favor Total Oppose Strongly Oppose 51% 67% 32% 22% Calhoun Aiken Orangeburg Barnwell Bamberg Allendale Colleton Hampton Clarendon Williamsburg Georgetown Dorchester Berkeley Charleston Low Country (19%) Jasper Strongly Favor Total Favor Total Oppose Strongly Oppose 60% 77% 21% 14% Beaufort While non-smokers support the 93-cent tax increase by a huge margin, even 47% of smokers think it’s a good idea. 93-Cent Tax Increase by Smoker Status +54% -6% 76% 53% 47% 22% Non-Smokers (82%) Total Favor Total Oppose Smokers (18%) Voters say they will reward legislators who support the 93-cent tax increase. “And, would you be more likely or less likely to support a candidate for political office here in South Carolina if they supported this 93-cent per pack increase in the state cigarette tax with part of the revenue dedicated to a program to reduce tobacco use, particularly among kids, and the rest of the revenue dedicated to funding Medicaid and other health care programs, or would this make no difference to your vote one way or the other?” Total More Likely: 50%* Total Less Likely: 17% Smwt More Likely 21% Much More Likely 30% DK/Ref 1% Smwt Less Likely 6% * Denotes Rounding Much Less Likely 11% No Difference 31% Across party, voters will back a legislator who supports the 93-cent increase. Support for Legislators by Party +36% +36% +10% +43% 55% 50% +33% 53% 52% 35% 25% 20% 16% 14% 12% Base GOP (28%) Soft GOP (19%) Ind (12%) Total More Likely Soft Dem (15%) Total Less Likely Base Dem (25%)