South Carolina has the nation’s lowest tax for cigarettes — at just 7 cents per pack — and it has been the same for 30 years. How does that compare to other states? The highest tobacco taxes are in New Jersey, where there’s a $4.29 cigarette tax for every pack.
But that will change if new legislation is passed to raise the cigarette tax 50 cents per pack. The state Senate was scheduled to start debating the bill on the floor today.
The real debate is not whether the bill will pass, but what the extra government revenue will be used for.
State estimates show the tax increase will add up to about $159 million, reported the Columbia State.
Some lawmakers have proposed using the funds to insure more state residents — including expanding Medicaid coverage, and providing tax credits for business to provide health insurance for workers.
Most likely, the money will be used for both.
The bill will also use $5 million for health programs to help people quit smoking and prevent others from ever starting.
“We’re gearing up. We’re excited that we’re finally getting around to something. ” said a spokesperson for the state coalition of health care and public advocacy groups.
Governor Mark Sanford has indicated support for the cigarette tax increase as long as there’s an equal tax cut somewhere else. The governor and state Senator John Courson have proposed cutting income taxes along with the cigarette tax hike.
The state House of Representatives has already passed a tax increase of 30 cents per pack. If the state Senate passes their version, they can send it back to the House for approval. But if the House votes against the Senate’s bill, there will have to be a compromise.
Congress has about five weeks before the state legislative session ends, and some worry time will run out.
“Most folks are ready to debate. I’m sure it won’t meet the criteria from everybody, ” said state Senator Thomas Alexander.