WPR News
8:40 pm
Thu January 6, 2005

Cigerette Tax Hike Working

Laramie, Wy – A tax increase has reduced cigarette use
and bolstered state revenue.
That's according to the Survey and Analysis Center at the University of Wyoming.
The excise tax on cigarettes was increased in 2003 from 12 cents per pack to 60 cents per pack. The center says that increased state revenue from around 500-thousand dollars per month to one-and-a-half million dollars per month.
Meanwhile, the number of packs sold fell by more than 17 percent.
Marc Homer is an assistant research scientist at the center. He speculates that another tax increase would further boost state revenue while slowing cigarette consumption.
He points out that the average cigarette tax in surrounding states is 80 cents per pack.