Tobacco Tax Bill Dies in House Finance

A bill to raise the state’s tobacco tax was approved by Senators earlier in the session and made its first appearance in a House Committee Thursday.

 

Delegates on the Finance Committee took up the bill Thursday morning and continued their discussions that afternoon.

 

Delegates continued their consideration of Senate Bill 420 for almost two hours voting on a few amendments, but in the end, the committee killed the bill.

 

The bill was presented on behalf of Governor Tomblin and originally included a 45 cent tax increase on each pack of cigarettes. As it passed the Senate, the bill bumped that tax up to a dollar.

The House Finance Committee adopted an amendment to the bill Thursday afternoon reducing the tax once again to the 45 cent per-pack rate as well as two other amendments.

One removed the tax hike for all other tobacco products- leaving only a tax increase for cigarettes. The second removed the tax for e-cigarette liquids.

After the amendments were adopted, only three members of the committee voted in favor of the bill. House Chairman Eric Nelson voted against it.

WVU Study Details Tobacco Tax Impacts

The Joint Select Committee on Tax Reform released results Tuesday from a study analyzing potential changes to tobacco tax policy in West Virginia.

The study was put together by the West Virginia University Bureau of Business and Economic Research. The report analyzes various changes to the tax rate on cigarettes, as well as potential purchasing declines as a result of an increased tax.

The report estimates that a 45-cent increase in the current 55-cent per pack tax on cigarettes would lead to a 6 to 12 percent decline in purchases, with an overall tax revenue increase between $60 million and $69 million.

A $1 increase in the tax was projected to cause a 14 to 27 percent decline in cigarette purchases, resulting in an increase of revenue between $101 million to $134 million.

The Senate has already passed a bill that would increase the tobacco tax by $1 per pack. The Finance Committee of the House of Delegates is scheduled to take up the Senate’s bill on Thursday.

Delegates Debate PEIA as 2017 Gap Looms

Members of the House will have to agree to a plan that closes the 2016 budget gap. On Wednesday, the chamber’s floor session largely focused on what that plan may look like for both the 2016 and 2017 fiscal years.

Governor Tomblin’s budget officials say the state will end the fiscal year in June with a nearly $400 million budget gap. Wednesday members of the House voted on three bills to help agencies like the Department of Health and Human Resources and the Public Defenders Service fund their programs through the end of the budget year.

Lawmakers passed all three supplementals without any opposition, but that hasn’t always been the case on the House floor this year. The budget has caused more than a few debates between members.

Delegates in the Democratic Party have specifically criticized the majority for ignoring the need for additional funding for the public employee’s health insurance program.

Wednesday, House Speaker Tim Armstead asked the members to understand that leadership is working to fix PEIA, and that the funding for the program is contained within the 2017 budget bill, just as it always has been.

“Let’s quit the game playing,” Armstead said, “Let’s quit trying to take every bill that comes through here whether it actually would or not fund anything, and try to throw some amendment on and try to say there’s no plan. This is a plan that needs to be developed as part of our overall budget, because this budget is what will fund PEIA, and make sure that our citizens do not have draconian cuts that none of us, Republican or Democrat, want to see occur.”

Minority Leader Tim Miley questioned Armstead’s remarks and brought up the tobacco tax bill passed in the Senate on Tuesday. The bill would increase the state’s cigarette tax by a dollar and also includes increases in tax rates for other tobacco products, including snuff and vaporized nicotine.

“We got a bill from the Senate that I think goes a long way if not completely fixes the PEIA problem,” Miley said, “but also, most importantly in my opinion, has a positive impact on the health of West Virginians. 25 senators, bi-partisan vote, supported that. Senate President didn’t. How committed is he to fixing PEIA. I hope the leadership of this House stands up, despite what the leadership of the Senate may have done, and says we are committed, and we’re gonna make those tough decisions, cause we have to make them too.”

The tobacco tax bill will soon land on Delegates’ desks, but many Senators doubt it will be successful in that chamber.

House Finance Chairman Eric Nelson says that’s not the case.

“I expect to have that up and debating on this very soon, and it’s too early to say when that is,” Nelson explained, “Obviously their bill is at a dollar, which increased it from the governor’s 45 cents. The projected revenue exceeds $100 million dollars, and we’ll have to have the appropriate debate on that.”

The tobacco tax will start in Nelson’s Finance Committee.

The Legislature Today: Tomblin Says 'Probably Could' Sign $1 Tobacco Tax

Senators want to raise the state’s tobacco tax by $1, but Governor Tomblin says that could cause a loss of business in the border counties. Still, Tomblin says if the measure is approved by the House of Delegates he “probably could” sign it.

More than a week after lawmakers voted to override Governor Tomblin’s veto of the Right-to-Work measure, members of the business community are still debating its worth. We meet two West Virginia business owners, one of which pulled his membership from the West Virginia Chamber of Commerce over the bill.

In the House, Delegates vote on a bill that would allow certain people to consume raw milk. A similar bill was vetoed by Governor Tomblin last year.

Senate Approves $1 Tobacco Tax Increase

The state Senate has approved a bill to increase the state’s cigarette tax by a dollar beginning in April of this year. Members voted 26 to 6 Tuesday. 

The bill also includes increases in tax rates for other tobacco products, including snuff and vaporized nicotine.

The bill was presented to lawmakers on behalf of Governor Tomblin as a part of his plan to balance the 2016 and 2017 budgets. 

In the 2016 budget year, which ends in June, lawmakers are working to close a $381 million budget shortfall. That shortfall grows to a projected $466 million in the 2017 fiscal year. 

Tomblin’s proposal, however, included only a 45 cent per pack increase. Tomblin said he was attempting to balance a need for increased revenues with sales competition in border counties. 

Lawmakers were more concerned about pressing budget issues and upped the tax.

The bill includes a proposal to commit a portion of the income from the cigarette tax to the state Public Employee’s Health Insurance Agency beginning in the 2018 fiscal year. 

The bill now heads to the House of Delegates. 

Tobacco Tax Hike Up For Vote

The West Virginia Senate is set to vote on a bigger tobacco tax hike than Gov. Earl Ray Tomblin has proposed.

The Republican-led chamber’s vote is slated for Tuesday.

Tomblin’s plan would have raised the cigarette tax by 45 cents to $1, raised a tax on other tobacco products and taxed e-cigarettes. It would have yielded $78 million additional annually and $18.9 million to help balance the 2016 budget.

A Senate committee approved a Democratic amendment to increase the cigarette tax further by $1 to $1.55, and dedicate the money to state employee and retiree health plans. It would bring in about $115 million more annually, not just $78 million.

Senators said the change would aid health plans beyond 2017.

The Republican-led House has been more hesitant to raise taxes.

Exit mobile version