Tobacco Iowa Tax Hike
The bill passed early this morning after several hours of debate that began last night. The measure would raise the tax by one dollar per pack, to a dollar 36. It would also increase the tax on other tobacco products by a commensurate percentage.
Lawmakers estimate the tax hike would raise more than $15 million during the final three months of the current budget year. That would be a bonus on top of the $127.6 million the tax hike is expected to collect during Fiscal Year 2008.
"I think you're way out of line," Sen. Mike Connolly, D-Dubuque, told Republicans. "You continue with the people way against you on this issue. ... They know better than that. Many people feel these people are purveyors of death."
Smokers could soon be digging deeper into their pockets to pay a dollar-a-pack increase in the state cigarette tax.
After debating the issue for several hours the Senate approved increasing the cigarette tax by $1 per pack increasing to $1.36 the tax on each pack of smokes. The increase has convenience store retailers concerned that customers will cross state lines or head to Native American reservations for lower-cost alternatives.



