As this time of year, the vast majority of state legislatures have adjourned for their 2016 legislative sessions. Below is a brief summary state tobacco-related legislation.
Cigarette and Tobacco Tax Increases
During 2016, twenty-three states considered bills to increase cigarette and/or tobacco product tax rates. Three states passed and enacted tax increases including Louisiana ($.22 per pack cigarette tax increase), Pennsylvania ($1.00 per pack cigarette tax increase and a new OTP tax rate of $.55 per ounce, which excludes cigars), and West Virginia ($.65 per pack cigarette tax increase plus another 5% tax rate hike on OTP).
Twenty other states also considered bills to raise cigarette and tobacco taxes, but legislation did not pass in Alaska, California, Florida, Georgia, Hawaii, Indiana, Kentucky, Maryland, Massachusetts, Mississippi, Nebraska, New Jersey, New Mexico, New York, Oklahoma, Rhode Island, Vermont, Virginia, Washington, and Wyoming.
November Ballot Questions
Although the California legislature did not pass a bill to raise the state cigarette and OTP tax rates, a petition to place a question on the November ballot was certified which means that California voters will vote on whether to raise the cigarette and OTP tax rates by $2.00 per pack and increase the OTP tax rate proportionately in line with the higher cigarette tax.
In Missouri, there are two pending ballot questions. One ballot question would increase the state’s current $.17 per pack cigarette tax rate to $.23 per pack by 2021 and the OTP tax rate by another 5%. The second ballot question would increase the cigarette tax rate by $.60 per pack by the year 2020 and impose a $.67 per pack fee on those cigarette manufacturers that are not a part of the Master Settlement Agreement.
In Colorado, a ballot question has been approved that would increase the Colorado cigarette tax by $1.75 per pack from the current $.84 per pack to $2.59 per pack and raise the excise tax on other tobacco products by another 22% of the manufacturer’s list price.
Also, the North Dakota general election ballot will have a question whether to increase the state cigarette tax by $1.76 per pack from the current $.44 per pack to $2.20 per pack and raise the tax on other tobacco products from 28% to 56% of the wholesale price.
E-Cigarette and Vapor Taxes
Pennsylvania enacted an e-cigarette and vapor products tax of 40% on the wholesale price. West Virginia passed a new excise tax on e-cigarettes and vapor products at the rate of 7.5 cents per milliliter of nicotine.
The other states that considered but did not pass an e-cigarette and vapor tax bill include Hawaii, Kentucky, Maine, Maryland, Michigan, Mississippi, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia, and Washington.
State Minimum Age Bills
During 2016, seventeen state legislatures had bills introduced to raise the legal age to purchase tobacco products to either age 19 or age 21. This year, only California enacted a statewide law to increase the legal minimum age to 21. California joins Hawaii as the only two states with an age 21 law. Bills introduced to raise the legal age to 21 in Connecticut, Illinois, Kentucky, Maryland, Massachusetts, Mississippi, New Jersey, New York, Oklahoma, Rhode Island, Tennessee, Utah, Vermont, Washington and West Virginia did not pass nor did a bill in Iowa that would have raised the legal age to 19 years old