Addressing Tobacco Pricing Policies:

A Toolkit for Tobacco Control Program Mangers

Essential Resources

The following documents are resources used to develop the PowerPoint. Resources are organized by section of the PowerPoint, with the document title, source, link, and slide number provided.

Many of the resources were developed by the Campaign for Tobacco Free Kids because these easily accessible materials translate well researched data into language that non-experts can understand and trust. Their primary resources and methods for interpreting the data, is available in the document entitled, “EXPLANATIONS AND SOURCES FOR PROJECTIONS OF NEW REVENUES & BENEFITS FROM STATE CIGARETTE TAX INCREASES,”

Part 1: The Toll of Tobacco

Toll of Tobacco in the United States of America

Campaign for Tobacco-Free Kids

Slides 6, 7

Health Harms from Smoking and Other Tobacco Use

Campaign for Tobacco-Free Kids

Slide 6

The Daily Toll of Tobacco Use in the USA

Campaign for Tobacco-Free Kids

Slide 7

Tobacco Use Among Youth

Campaign for Tobacco-Free Kids

Slide 7

Key State-Specific Tobacco-Related Data & Rankings

Campaign for Tobacco-Free Kids

Slides 8, 9

Part 2: Raising the Price of Tobacco

Taking Action to Reduce Tobacco Use

Institute of Medicine and Commission on Life Sciences, National Research Council

Citation:IOM, Taking Action to Reduce Tobacco Use, Washington, DC: National Academy Press, 1998.

Slide 12

Tobacco Taxes: A WIN-WIN-WIN for Cash-Strapped States

Campaign for Tobacco-Free Kids

Slides 14, 24

Raising Cigarette Taxes Reduces Smoking, Especially among Kids (And the Cigarette Companies Know It)

Campaign for Tobacco-Free Kids

Slide 17

Pregnancy-Related Benefits and Cost Savings from Raising Cigarette Taxes

Campaign for Tobacco-Free Kids

Slide 17

State Cigarette Tax Increases Benefit Lower-Income Smokers and Families

Campaign for Tobacco-Free Kids

Slides 17, 32

State Benefits from a $1 Cigarette Tax Increase

Campaign for Tobacco-Free Kids

Slide 18

Tobacco Tax Increases Are a Reliable Source of Substantial New State Revenue

Campaign for Tobacco-Free Kids

Slides 23, 26

Voters in All States Support Significant Increases in State Cigarette Taxes

Campaign for Tobacco-Free Kids

Slide 24

Map of Cigarette Tax Rates

Campaign for Tobacco-Free Kids

Slide 25

Responses to Misleading and Inaccurate Cigarette Company Arguments Against State Cigarette Tax Increases Campaign for Tobacco-Free Kids

Slides 26-33

The Case for High-Tech Cigarette Tax Stamp

Campaign for Tobacco-Free Kids

Slide 28

State Cigarette Tax Increases, Retailers, and Jobs

Campaign for Tobacco-Free Kids

Slide 31

Part 3: Other Tobacco Pricing Policies

State Benefits from Increasing Smokeless Tobacco Tax Rates

Campaign for Tobacco-Free Kids

Slide 36

How to Make State Cigar Tax Rates Fair and Effective

Campaign for Tobacco-Free Kids

Slide 36

Taxation of Smokeless Tobacco: Percentage of Price vs. Net Weight

American Lung Association

Slide 37

Internet Sales of Tobacco Products – Reaching Kids & Evading Taxes

Campaign for Tobacco-Free Kids

Slide 41

The PACT Act: Preventing Illegal Internet Sales of Cigarettes & Smokeless Tobacco

Campaign for Tobacco-Free Kids

Slide 41

Additional Resources

General Resources

Best Practices User Guide: Tobacco Pricing Policies (TBA)

Centers for Disease Control and Prevention

Interactive State-by-State Cigarette Excise Tax Map of United States

Robert Wood Johnson Foundation

Campaign for Tobacco Free Kids Fact Sheets Available Online

General Information and Arguments for Raising the Price of Tobacco

The Many Ways States Can Raise Revenue While Also Reducing Tobacco Use and Its Many Harms & Costs

Raising State Cigarette Taxes Always Increases State Revenues and Always Reduces Smoking

Cigarette Tax Increases vs. Cigarette Company Price Increases (Compared to Avg Retail Prices 1993-2008)

Explanations & Sources for TFK Projections of New Revenues & Benefits from State Cigarette Tax Increases

Effect of State Tobacco-Tax Increases on MSA and Phase II Payments to the States

State Cigarette Tax Increases and State Tobacco Settlement Revenues

State Options to Prevent and Reduce Cigarette Smuggling and to Block Other Illegal State Tobacco Tax Evasion

Tobacco Tax Increases for Health Care and Tobacco Prevention

Using Tobacco Tax Increases to Fund Comprehensive Tobacco Prevention Programs

Tax Increases Are Not Enough - States Must Also Invest in Tobacco Prevention Programs

Using State Cigarette Tax Increases to Replace Any Reduced or Delayed Settlement Payments

State and Local Tax Rates

State Cigarette Excise Tax Rates & Rankings

Map Showing State Cigarette Tax Rates

Top Combined State-Local Cigarette Tax Rates (State plus County plus City)

Local Government Cigarette Tax Rates

Cigarette Tax Increases by State per Year 2000-2010

State Cigarette Tax Increases (& Recessions) Since 1980

State Cigarette Tax Increases since January 1, 2002, With Political Party of Sitting Governor Legislature

State Cigarette Tax Rates & Rank, Date of Last Increase, Annual Pack Sales & Revenues, and Related Data

State Excise & Sales Taxes per Pack of Cigarettes - Total Amounts and State Rankings

Trends in Average State Cigarette Tax Rates

State Tobacco Tax Hikes to Replace MSA Funds

Impact of Raising Taxes on Specific Populations

State Cigarette Tax Increases Will Not Hurt U.S. Tobacco Growers or Cigarette Factory Workers

Case Studies

The New York City Experience: New Revenues from a $1.42 per Pack Cigarette Tax Increase

The Michigan Story: Cigarette Tax Increases, New Revenues, and the Value of Tax Stamps

Other Tobacco Products

The Best Way to Tax Smokeless Tobacco

Closing Weight-Based Tax Loopholes for the New Generation of Low Weight Moist Snuff Smokeless Tobacco Products

State Excise Tax Rates for Non-Cigarette Tobacco Products

The Problem with Roll-Your-Own (RYO) Tobacco

The Rise of Cigars and Cigar-Smoking Harms

Campaign for Tobacco Free Kids Resources Available by Request Only

Please contact Ann Boonn at for more information.

State-Specific Tobacco Tax Factsheets

  • Benefits from a Cigarette Tax Increase of ___ Cents Per Pack in [State]
  • Projected Medicaid Program Savings in [State] From A ___-Cent Cigarette Tax Increase
  • A State Cigarette Tax Increase Will Not Harm [State’s] Tobacco Farmers
  • Benefits to [State] from Adjusting its Tax Rates for Other Tobacco Products to Match the State’s Tax Rate for Cigarettes
  • Factsheets with tables showing benefits and revenues from range of different tax increase amounts
  • Factsheets comparing projected revenues and benefits from competing proposed amounts
  • Factsheets comparing projected benefits from a one-time increase instead of multi-year increase
  • State-specific memo on creating tax equity for all tobacco products

General Information and Arguments for Raising the Price of Tobacco

  • Checklist of key items and issues to consider whenever cigarette tax increases are proposed
  • Model letter to state fiscal office re revenue projections for any state tobacco tax increase proposals
  • Model legislation re annual public state reports on revenues and benefits from state taxes on different types of tobacco products
  • Help with analysis of specific legislative proposals or with drafting legislation
  • Model tax-equity legislation to set all OTP tax rates so they parallel state cigarette tax and rise with it
  • Model legislation to establish minimum legal prices for all tobacco products

Other Tobacco Products

  • Guidance sheet with model legislative text on improving state tax systems for smokeless or all OTPs
  • Guidance on improving smokeless, moist snuff, or OTP definitions
  • Graph showing revenue losses from weight-based taxes – and how to fix them
  • Graph showing different state revenues from different moist snuff tax systems
  • Model letter to state fiscal office re revenue projections for weight-based change proposals
  • Graphic showing different types of “moist snuff” with vastly different weights per dose
  • Model legislation to place state NPM fee on smokeless companies that do not join the Smokeless MSA
  • Model legislation on improving cigarette and cigar definitions

High-Tech Tax Stamps

  • Model legislation for establishing a high-tech tax stamp
  • Model legislation for stabilizing state tobacco revenues [via automatic tax increases] and directing surplus payments to tobacco prevention

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