Montana Considers Hiking Tobacco Taxes

Legislation would also add a tax on vapor and electronic cigarettes.

March 29, 2017

HELENA, Montana – The Montana legislature is debating a proposal that would add $1.50 to the state’s cigarette tax, Montana Public Radio reports. State Sen. Mary Caferro’s bill would also tack on at least $1.50 on chew cans, plus a 24% tax bump on the wholesale price of all tobacco products, including snuff and cigarettes.

Senate Bill 354 also would include electronic cigarettes and vapor under the state’s tobacco taxes. Caferro said her measure is designed to keep kids from smoking. Revenue from the higher taxes would be funneled into state veterans homes, Medicaid, infrastructure programs, Native American tribes and a general fund.

E-cig and vapor shop owners oppose the bill. “I’m trying to help people better their lifestyle and improve their health and I'm treated like a demon and taxed at 74%,” said Ron Marshall, owner of Freedom Vape. Marshall testified that electronic cigarettes assisted people in quitting tobacco.

Jeffrey Brewer, owner of the Man Store, said higher cigarette taxes would drive him out of business. “[A] countless number of times I’ve had customers tell me, ‘I went to Idaho this weekend and stocked up on five cartons of cigarettes, so I won’t need any for a while,’” he said.

Montana last increased its cigarette tax in 2005. The current tax is $1.70 per pack. Meanwhile, Indiana convenience stores are opposing a proposed $1 per pack hike in the Indiana state cigarette tax.

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