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Tobacco Tax Increases in New Mexico and Utah

March 24, 2010

This month New Mexico and Utah became the first states to raise tobacco taxes in 2010.

March 24, 2010

New Mexico Governor Bill Richardson signed into law a 75-cent per pack cigarette tax increase, putting the stateŠ—Ès tax at $1.66 per pack, the 18th highest in the nation. The revenue will be directed to the stateŠ—Ès general fund, the funding source for most of the stateŠ—Ès health programs.

March 8, 2010

Utah's legislature approved a $1.005 increase in the cigarette tax, for a total tax of $1.70 per pack. The tax on other tobacco products is also going up, from 35 percent of average manufacturers price (AMP) to 86 percent -- a 51 percent increase. In addition, the tax on moist snuff will go from 75 cents per ounce to $1.83 per ounce. Revenue from the taxes will go to the general fund and will be used to restore prenatal care for low income expectant mothers, highway patrol funds, and other important programs.