The Missouri Supreme Court yesterday dismissed claims a proposed tobacco tax is unconstitutional.
With a
7-0 ruling, Amendment 3 - aka Raise Your Hand for Kids - will go before voters during the Nov. 8 general election.
Opponents of the constitutional amendment claimed the petition signed by registered voters did not match up with changes to the language made after going through the court of appeals in July. Missouri Secretary of State Jason Kander
certified the proposed tax in August, and voters in November will see the ballot language approved in July, rather than what appeared on the petition.
In the decision, state Supreme Court justices wrote they have no authority to invalidate a ballot petition, even after the summary is changed. Further, the justices said the opposition to Amendment 3 had more to do with its potential impact than the ballot language.
“They focus solely on whether Amendment No. 3 - if and when it is approved by the voters and put into effect - will (or might) violate various pre-existing prohibitions in the Missouri Constitution,” the ruling reads. “There will be time enough for such claims after the election, if Missouri voters find Amendment No. 3 to their liking.”
If approved, the amendment would increase taxes on cigarettes sold in Missouri through 2020, ending at 60 cents per pack of 20. It separately would add a fee of 67 cents per pack of 20 paid by cigarette wholesalers on “certain cigarettes.” The tax is expected to generate additional state revenue of $263 million-$374 million annually, which would fund early childhood health and education causes, according to Kander’s office.
The amendment is favored by R.J. Reynolds Tobacco Co., the maker of popular brands such as Camel and Newport, which has given more than $2 million toward the cause.
Critics have argued the tax is designed to favor larger tobacco companies, specifically the extra fee they say is meant to harm smaller businesses.
In 1998, Missouri was one of 46 states that entered a settlement with major cigarette makers. However, according to a
column by Mark Hughes of Missouri Digital News, companies formed since the settlement have escaped payments to the fund and have been able to price their cigarettes at a lower cost.
Amendment 3 was one of two proposed tobacco taxes certified by Kander’s office in August.
The other, a 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.” Transportation infrastructure projects would have access to $95 million-$103 million in expected funds to be generated from the tax.
