 Members of the Health Investment Partnership attend a press conference announcing the call for a tobacco tax increase. |
Every single state that has raised its cigarette tax rate has subsequently received more tax revenue than they would have received without a rate increase, despite the fact that cigarette tax increases reduce state smoking levels and despite any related increases in cigarette smuggling or tax evasion. Put simply, the increased tax per pack brings in more new state revenue than is lost from the related reductions in the number of packs sold and taxed in the state. Moreover, the substantially higher revenue levels enjoyed by those states that significantly increase their cigarette tax rates persist over time (while the cost savings from the related smoking declines grow rapidly.)
- New Annual Revenue from Increasing the Cigarette Tax Rate by $1.20 Per Pack: $74.7 million
- Additional Revenue from Raising Other Tobacco Product Rates to Parallel New Levels: $7.7 million
New Annual Revenue is the amount of additional new revenue over the first full year after the effective date. The state will collect less new revenue if it fails to apply the rate increase to all cigarettes and other tobacco products held in wholesaler and retailer inventories on the effective date.
Projected Public Health Benefits from the Cigarette Tax Rate Increase
- Percent decrease in youth smoking: 16.8%
- Kids in Nevada kept from becoming addicted adult smokers: 21,800
- Current adult smokers in the state who would quit: 16,300
- Smoking-affected births avoided over next five years: 3,050
- Nevada residents saved from premature smoking-caused death: 11,200
- 5-year health savings from fewer smoking-affected pregnancies & births: $5.2 million
- 5-year health savings from fewer smoking-caused heart attacks & strokes: $9.7 million
- Long-term health savings in the state from adult & youth smoking declines: $536.4 million
Source: Campaign for Tobacco Free Kids
Additional tax information resources:
Press release: Health Investment Partnership and Nevada Youth Unite to Kick Butts
Press release: Nevadans Show Strong Bipartisan Support for Tobacco Tax Increase
Nevada Tobacco Survey Results
Study Shows Health Impact Fee on Tobacco Products Would Dramatically Reduce State Deficit, Save Lives
A Significant Cigarette Tax rate increase in Nevada Would Produce a Large, Sustained Increase in State Tobacco Tax Revenues
Raising state taxes will always increase state revenues
NV Tax Hike Benefits
State Cigarette Tax Rankings
Cough It Up-Why do most cigarette smokers tolerate massive state tax increases?