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Little interest so far in higher cigarette tax in Ohio (Mansfield NewsJournal)
04/08/2010
Health advocates are pushing tobacco taxes as a way to dissuade smoking and a means to bridge the state budget shortfall, but campaign concerns may stall any tax increases.
A growing number of states have been leaning on smokers to help plug budget holes, but no such plan is in the works for Ohio. For now, anyway.
Cash-strapped states are considering or enacting cigarette tax increases at a pace that has been equaled only in 10 other years since 1950.
So far this year, legislators have voted to raise cigarette taxes by $1 per pack in Utah and 75 cents a pack in New Mexico. At least a half-dozen other states have been considering increases. In 2009, 14 states and the District of Columbia raised cigarette taxes.
Ohio's cigarette tax has been $1.25 per pack since 2005, when it more than doubled from 55 cents. The state's rate is 24th out of the 50 states and the District of Columbia. Any state tax is in addition to the federal per pack tax of $1.01.
State Sen. Sue Morano, D-Lorain, said the Senate Health, Human Services and Aging Committee hasn't had any proposals to increase the tax recently.
The hike appeals to champions of healthy living because of demonstrated links between higher taxes and smoking cessation, but the revenue might be a bigger draw for lawmakers.
Shelly Kiser, advocacy director for the American Lung Association of Ohio, said doubling the tax to $2.50 a pack would bring in an extra $347 million in revenue a year. The public health benefits should trump concerns over being labeled as a tax lover, Kiser said.
But Gordon Gough, vice president of the Ohio Council of Retail Merchants, said adding to smokers' financial strain may drive state revenue downward.
"There is a tipping point to where too much tax decreases revenue," he said.
A jump in tobacco taxes may speed the progression toward a smoke-free society, he said, meaning there would be less tax revenue to collect.
That's a result that would be more than acceptable to Kiser, who points out that curtailing smoking would save the state money in Medicaid and other health care costs.
But in the Ohio General Assembly, it's just not cool to raise taxes. State Sen. Dale Miller, D-Cleveland, found this out firsthand when he sponsored a bill in February 2009 to raise the tax on non-cigarette tobacco products from 17 percent to 54 percent. The bill died in committee.
The tax on these products has been at 17 percent since 1992.
"Right now there's a pretty big reluctance to raising taxes," Miller said. "It's not a popular thing to do."
In July 2005 the tax-per-pack on cigarettes went up 70 cents. The amount collected in 2006 almost doubled, but has steadily declined since. In 2005 the state collected $551 million from cigarette taxes. In 2006 the state collected $992 million, and last year Ohio collected $883 million.
However, the amount collected from taxes on other tobacco products has steadily increased, indicating that more people are turning to these types of products. In 2000, $22 million was collected from this tax. In 2006 $30 million was collected, and last year $42 million was collected.
Miller said it's highly unlikely that any tobacco tax increases will come up this year. However, when the new General Assembly convenes in 2011, legislators likely will face a large budget gap and more falling revenues, which may force the issue.
Kiser conceded state lawmakers are nervous to support something in an election year that could be used against them politically.
"That's the one objection we hear," she said. "That they are concerned about doing a tax before an election, that their opponents will use it against them."
Gough said prospects for raising the cigarette tax are likely to burn brighter once the campaigning ends.
"It's really tough to tell," he said. "There wasn't much traction in 2009 to do so, but I think we're all aware there is going to be a budget shortfall and a lot of things will be on the table."
State Sen. Karen Gillmor, R-Tiffin, is firmly opposed to any tax increase this year. Gillmor is the vice chairwoman of Senate Health, Human Services and Aging Committee.
She said two weeks ago a coalition of people came into her office proposing a $1.50 a pack increase.
"I have a fundamental belief that people know best how to spend their own money," she said.
Gillmor said that as the budget gap continues to worsen tax hikes may be put back on the table in the future.
Morano, a registered nurse who believes education is the best approach to curb smoking, said there aren't any proposals to increase funding for smoking cessation before her committee right now.
A growing number of states have been leaning on smokers to help plug budget holes, but no such plan is in the works for Ohio. For now, anyway.
Cash-strapped states are considering or enacting cigarette tax increases at a pace that has been equaled only in 10 other years since 1950.
So far this year, legislators have voted to raise cigarette taxes by $1 per pack in Utah and 75 cents a pack in New Mexico. At least a half-dozen other states have been considering increases. In 2009, 14 states and the District of Columbia raised cigarette taxes.
Ohio's cigarette tax has been $1.25 per pack since 2005, when it more than doubled from 55 cents. The state's rate is 24th out of the 50 states and the District of Columbia. Any state tax is in addition to the federal per pack tax of $1.01.
State Sen. Sue Morano, D-Lorain, said the Senate Health, Human Services and Aging Committee hasn't had any proposals to increase the tax recently.
The hike appeals to champions of healthy living because of demonstrated links between higher taxes and smoking cessation, but the revenue might be a bigger draw for lawmakers.
Shelly Kiser, advocacy director for the American Lung Association of Ohio, said doubling the tax to $2.50 a pack would bring in an extra $347 million in revenue a year. The public health benefits should trump concerns over being labeled as a tax lover, Kiser said.
But Gordon Gough, vice president of the Ohio Council of Retail Merchants, said adding to smokers' financial strain may drive state revenue downward.
"There is a tipping point to where too much tax decreases revenue," he said.
A jump in tobacco taxes may speed the progression toward a smoke-free society, he said, meaning there would be less tax revenue to collect.
That's a result that would be more than acceptable to Kiser, who points out that curtailing smoking would save the state money in Medicaid and other health care costs.
But in the Ohio General Assembly, it's just not cool to raise taxes. State Sen. Dale Miller, D-Cleveland, found this out firsthand when he sponsored a bill in February 2009 to raise the tax on non-cigarette tobacco products from 17 percent to 54 percent. The bill died in committee.
The tax on these products has been at 17 percent since 1992.
"Right now there's a pretty big reluctance to raising taxes," Miller said. "It's not a popular thing to do."
In July 2005 the tax-per-pack on cigarettes went up 70 cents. The amount collected in 2006 almost doubled, but has steadily declined since. In 2005 the state collected $551 million from cigarette taxes. In 2006 the state collected $992 million, and last year Ohio collected $883 million.
However, the amount collected from taxes on other tobacco products has steadily increased, indicating that more people are turning to these types of products. In 2000, $22 million was collected from this tax. In 2006 $30 million was collected, and last year $42 million was collected.
Miller said it's highly unlikely that any tobacco tax increases will come up this year. However, when the new General Assembly convenes in 2011, legislators likely will face a large budget gap and more falling revenues, which may force the issue.
Kiser conceded state lawmakers are nervous to support something in an election year that could be used against them politically.
"That's the one objection we hear," she said. "That they are concerned about doing a tax before an election, that their opponents will use it against them."
Gough said prospects for raising the cigarette tax are likely to burn brighter once the campaigning ends.
"It's really tough to tell," he said. "There wasn't much traction in 2009 to do so, but I think we're all aware there is going to be a budget shortfall and a lot of things will be on the table."
State Sen. Karen Gillmor, R-Tiffin, is firmly opposed to any tax increase this year. Gillmor is the vice chairwoman of Senate Health, Human Services and Aging Committee.
She said two weeks ago a coalition of people came into her office proposing a $1.50 a pack increase.
"I have a fundamental belief that people know best how to spend their own money," she said.
Gillmor said that as the budget gap continues to worsen tax hikes may be put back on the table in the future.
Morano, a registered nurse who believes education is the best approach to curb smoking, said there aren't any proposals to increase funding for smoking cessation before her committee right now.
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