WASHINGTON, D.C. -- April 8, 2009 -- Effective this Friday, April 10, 2009, Rhode Island will be the first state with a tobacco tax to exceed $3.00. The Rhode Island General Assembly approved a $1.00 tax increase last week as part of the state’s 2009 supplemental budget.
Governor Donald L. Carcieri threatened to veto the increase, but instead allowed the bill to become law without his signature on Tuesday, April 7, 2009.
The increase will boost Rhode Island to having the highest cigarette tax in the nation at $3.46 per pack.
“We applaud Rhode Island for their latest show of leadership on cigarette taxes,” said Daniel E. Smith, president of the American Cancer Society Cancer Action Network (ACS CAN). “Raising the cigarette tax is good health policy and a proven way to reduce smoking rates among adults and especially youth. We are extremely proud of our advocates in Rhode Island for enacting this landmark increase and supporting a healthier environment for everyone. We encourage other states to continue this lifesaving trend.”
According to research from the Campaign for Tobacco Free Kids, it is estimated that the $1.00 increase will deter 7,300 kids in Rhode Island from starting to smoke and motivate 3,400 current smokers in the state to quit.
The increased tax will generate approximately $13.3 million in revenue for the state. The long-term health impact savings for the state from adult and youth smoking decline is estimated to be $160.1 million.
In addition to the $1.00 increase, the measure also increased the tax on other tobacco products from 40 percent of wholesale price to 80 percent of wholesale price. Rhode Island’s 50 cent tax cap on cigars remains in law.
The tax increase pushed Rhode Island’s tobacco tax from fourth highest in the nation to the highest. Until now, the New York tax had been the highest in the nation at $2.75 a pack. The lowest state cigarette tax is in South Carolina at seven cents per pack. The current average state cigarette tax is $1.21. After Rhode Island’s increase the average will be $1.23 per pack. Since January 1, 2002, 44 states and the District of Columbia have increased cigarette taxes, some more than once.
“Research has consistently shown that every 10 percent increase in the price of cigarettes reduces youth smoking by 7 percent and overall cigarette consumption by about 4 percent.” said Dr. John Seffrin, CEO of ACS CAN, the advocacy affiliate organization of the American Cancer Society. “As an organization dedicated to reducing the burden that cancer has on Americans, we recognize the role strong tobacco policies play in alleviating this burden and raising tobacco taxes is an extremely effective way of doing so.”
Rhode Island is the third state to increase its tobacco tax this year. In February, Arkansas increased its tax by 56 cents and Kentucky increased its tobacco tax by 30 cents, doubling the state tax to 60 cents per pack.
Rhode Island's victory comes on the heels of a 61.6 cent increase in the federal tobacco tax, which is now $1.01 as of April 1, 2009.
FOR MORE INFORMATION, CONTACT:
Nicole Bender
Phone: (202) 661-5773|
Email: [email protected]