Cigarette tax hike heard in Legislature

Posted By: Sarah Fili

sfili@klkntv.com

Lawmakers held a hearing at the capitol Thursday, discussing a bill to increase taxes on cigarettes. Right now smokers pay 64 cents per pack. The bill hopes to add another $1.50 to that. Meaning an extra $2.14 added to each pack. Senator Mike Gloor introduced the bill, saying this will benefit Nebraska in several ways. Especially improving people’s health. Nearly 2,500 Nebraskans die every year because of smoking related illnesses.

"One of the reasons we introduced this bill is because we expect people will stop smoking, or at least reduce smoking because of the increase,” Senator Mike Gloor, Grand Island, said.

It could save millions in healthcare costs, cutting down on people using Medicare and Medicaid. It’ll also cut down on property taxes and fund healthcare programs around the state. Doctors at the hearing say it could also stop teens from picking up the habit. Opposers say it may hurt more than it will help.

"I’ve been around a long time. People used to talk ‘if it goes above a dollar I’m going to quit.’ but in reality, that’s not what usually happens, it’s an addiction. Those who can’t afford it end up bearing the brunt of it,” Mark Whitehead, U-Stop owner, said.

Convenience store owners say if the taxes go up, sales could go down in Nebraska. That means people may go out of state to purchase cigarettes, and take their money with them.

"We have a different excise tax than the surrounding state; to the extent that we are on the favorable side of that we have the opportunity of drawing the consumer across the border. And just the reverse is true the other way around,” Whitehead.

It’s Gloor’s third time proposing a tax increase for cigarettes. Bills introduced in 2011 and 2013 never made it out of committee. If this bill makes it out of committee, it’ll head to the legislature floor.

To view the bill, click here: http://nebraskalegislature.gov/FloorDocs/Current/PDF/Intro/LB1013.pdf