In a bizarre circlular move, the state House approved a $1 hike in the state cigarette tax today, an increase expected to generate $680 million that will be used to offset lower property taxes in Gov. Rick Perry's retooled school finance plan — and the higher price of cigarettes is expected to cut smoking in Texas, which means tobacco companies will have to try harder to convince teens to buy cigarettes so they can stay in school. Don't think about it too long or you'll get dizzy.
The Senate has to approve the increase before it goes into effect. If it does, the cigarette tax in Texas will jump to $1.41 from 41 cents per pack, making it much higher than the cigarette taxes in neighboring states. In Louisiana, the tax is 36 cents per pack; in Arkansas, 59 cents; in New Mexico, 91 cents; and in Oklahoma, $1.03. The highest cigarette tax in the country is $2.46 in Rhode Island and the lowest is 17 cents in Missouri.
Though Perry has said a higher tax will deter people from smoking, thereby saving the state money on health care, some legislators say it won't slow smokers down: "They just get [cigarettes] from another source," said Rep. Warren Chisum of Pampa, who tried to reduce the tax increase to 65 cents a pack. But the governor is adamant: "If the choice is between taxing property or taxing poison, then I say let's tax cigarettes," he said.
The Senate is expected to consider the tax increase next week.
