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Tobacco Tax Increase Returns to West Virginia Budget Proposal

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It’s back: a proposal to raise the tax on tobacco products including premium cigars in West Virginia, as the state legislature returns for an extended session to come to an agreement on the 2016-17 budget. SB 1012 was approved by the state Senate on Friday, which includes a 65-cent per pack increase on cigarettes as well as an increase in the tax on other tobacco products (OTP) from 7 percent to 12 percent of the wholesale price. E-cigarettes would also be subject to the 12 percent tax rate. The bill passed by a 24-7 vote with three absentees. It now heads to the state House of Delegates, where similar bills have been met with defeats in recent weeks. The first defeat of the increase came back in March and included a $1 per pack increase on cigarettes, with a second–and somewhat shocking–defeat coming in May as a 45-cent per pack increase was proposed along with the OTP increase. The reason? House Democrats didn’t think the tax was enough. When they partnered with a group of staunch anti-tax Republicans, the bill failed 44-55. Then on June 3, the house voted against the increase again. The legislature is looking for ways to close a $270 ...

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