CONCORD - New Hampshire
could face a higher tobacco tax, if the Senate approves the House??s proposed
raise of 20 cents, the Associated Press reports. The 20-cent hike is 10 cents
less than Gov. Maggie Hassan proposed in her budget.
The increase would bump
the cigarette tax to $1.88. Currently, the $1.68 per pack cigarette tax would
rise to $1.78 automatically if the legislature does nothing. The 20-cent
increase would also be applied to other tobacco products.
House Ways and Means
Chairwoman Susan Almy said the higher tax would fund state services and also
serve as a discouragement to teen smoking. Meanwhile, the governor said she
would push for a 30-cent jump in tobacco taxes. "We want to make sure we have the
revenues we need to address our priorities, so I will continue to talk with the
House and Senate about that," said Hassan.
Each 10-cent raise
generates $10 million annually. Even if the tax is increased 20 cents, New
Hampshire will still have a lower tax rate than border states because the
Granite State has no general sales tax. In 2011, lawmakers slashed the tobacco
tax by a dime to spur sales from non-residents, but that decrease was tied to
revenue not decreasing, which it has.