SALEM – In Oregon, two competing bills would raise cigarette taxes in different ways, the Register-Guard reports. Lawmakers are considering an increase in the state cigarette tax as a component of the FY2013-14 budget. The current $1.18 per cigarette pack would bump up 10 cents to 50 cents under the budget proposals. That’s down sharply from a talked-about $1 per pack increase earlier this year. 

HB 2870 would eliminate the state ban on counties levying their own tobacco taxes. “It’s fair to say that if the state (tobacco tax) increase happens, the county bill won’t pass,” said state Sen. Ginny Burdick, who chairs the Senate Finance and Revenue Committee. 

County officials have asked for passage of HB 2870 as a way to generate cash for county programs and initiatives. The bill would allow counties to add a separate tobacco tax that could be more the state tobacco tax. Forty percent of the revenue generated from such a county tobacco tax would have to be earmarked for tobacco cessation and prevention campaigns, mental health initiatives or alcohol and drug addition programs. 

Both states and counties are eying tobacco tax hikes as a way to cover budget shortfalls. A 50-cent-per-pack bump in the state tax would bring in more than $50 million annually. However, the tobacco industry is likely to fight any tax increases by asking for a voter referendum on the increase.

In April, the House approved HB 2870, and it has been languishing in the Senate ever since. Passage of the bill seems more and more unlikely, given the narrow advantage held by Democrats. Four years ago, a look-alike measure got through the House but not the Senate.