Missouri Secretary of State Jason Kander’s office yesterday announced the certification of two tobacco tax proposals backed by industry groups for the November ballot.
The first, which seeks a constitutional amendment, is favored by R.J. Reynolds Tobacco Co. The maker of popular barnds such as Camel and Newport has given more than $2 million in support, according to
Ballotpedia.org.
The proposed amendment, also known as Raise Your Hand for Kids, would increase taxes on cigarettes sold in Missouri through 2020, ending at 60 cents per pack of 20. It also would add a fee of 67 cents per pack of 20 on “certain cigarettes,” according to a news release from Kander’s office.
The tax is expected to generate additional state revenue of $263 million-$374 million annually, which would fund early childhood health and education causes.
The initiative backed by groups such as the
Missouri School Boards’ Association faces backlash from opponents who say the proposed tax increase would harm smaller tobacco companies and benefit larger businesses in that industry.
Mark Hughes, who helps manage Missouri Digital News, wrote in “
Analysis: A Tale of Two Tobacco Taxes” that in 1998, Missouri was one of 46 states that entered a settlement with major cigarette makers. However, according to the article, companies formed since the settlement have escaped payments to the fund and have been able to price their cigarettes at a lower cost.
The second proposal certified by Kander’s office is backed by the Missouri Petroleum Marketers and Convenience Store Association, as well as smaller cigarette companies like Cheyenne International and Xcaliber International, according to Ballotpedia.
The initiative, a proposed statutory amendment, would increase taxes on packs of 20 cigarettes through 2021, ending at 23 cents. It also calls on increasing “the tax paid by sellers on other tobacco products by 5 percent of manufacturer’s invoice price.”
The $95 million-$103 million expected to be generated annually be the tax would be earmarked for transportation infrastructure projects, according to the release.
Missouri’s current cigarette tax of 17 cents is the lowest in the nation.
