Tag: Tobacco tax

Tobacco Tax Bill Pushed to Wednesday in Senate Committee

After some discussion of possible amendments, members of the Senate Finance Committee decided Tuesday to finish their consideration of a bill to increase the state’s tobacco tax Wednesday afternoon.

The bill, introduced on behalf of Governor Tomblin, would increase the tax by 45 cents per pack and also includes various increases for other tobacco products. Members, however, were interested in several amendments to the bill, leading to the recess.

Tomblin presented the bill as a part of his plan to balance both the 2016 and 2017 budgets. That plan also included a 6 percent tax on cell phones and land lines. 

Senate Finance Chair Mike Hall said Tuesday he realized months ago it was time for lawmakers to begin discussing ways to bring more money into the state’s coffers, and whether it’s for health or revenue reasons, Hall believed members of the Legislature are willing to at least consider the tobacco tax hike.

“It’s not as broad based as I would like to see it if we’re going to do a revenue measure,” Hall said. “There are broader based taxes possibly that don’t just affect this population, but this is the one that’s been bandied about this building for a long time.”

Amendments discussed Tuesday included dedicating a portion of the funds generated by the increase to funding the state’s Public Employee’s Health Insurance Agency. That amendment is expected to be discussed further Wednesday.

Democratic Lawmakers Look at Tobacco Tax for 2016

Democratic members of the House of Delegates met Tuesday to discuss their priorities for the 2016 legislative session.

House Minority Leader, Tim Miley of Harrison County shared a handful of the issues he says his party will propose during the 2016 session, but also made clear which Republican backed bills Democrats will oppose.

Those included a repeal of the state’s prevailing wage, the passage of a right-to-work law, and forced pooling; a measure that allows the natural gas industry to force the sale of certain minerals. 

But Miley says his top priority is to fix the funding issue for PEIA.

PEIA – the Public Employees Insurance Agency – is one of the most prominent insurance providers in the state, and it’s received some major cuts in the past year.

Delegate Mick Bates from Raleigh County wants to make up for the funding cuts by raising the tobacco tax.

“What we’re proposing is an increase in the region for a dollar per pack,” Bates explained, “also expanding that to include all tobacco products including e-cigarettes, so that would be the initial increase. Also moving forward, we would propose adding additional ten cents per year over the course of five years.”

Bates says the initial 120 million dollars would go to PEIA in the first year, preventing many benefit cuts, with an additional $60 million in funding each year after. Bates says it would be a quote, “fix and fund now as well as a fix and fund for the future” solution.

House Minority Leader, Tim Miley says being in the minority could make it difficult to get some of their legislation passed, but he hopes by bringing ideas to the table, their voices will be heard.

“This has to be an educational campaign when it comes to the health of our citizens in this state; that’s really what has to be considered, but when the public is educated on what we think would be a benefit for the overall health to our state, they will in turn communicate that same understanding and appreciation to their legislators and we hope we can have change occur down here,” Miley said.

The 2016 legislative session begins Wednesday, January 13.

Tobacco Tax Likely on Table for 2016 Session

As lawmakers continue to discuss ways to reform the state’s tax code, Tuesday’s meeting of the Joint Select Committee on Tax Reform focused on one tax increase that may be palatable for members of the state Legislature, the tobacco tax.

West Virginia last increased its tobacco tax in 2003 to the current 55 cents per pack which, according to the national Tax Foundation, is the 8th lowest in the nation.

Tax Foundation Policy Analyst Jared Walczak told members of the committee while the state does have one of the highest smoking rates in the nation at 23 percent, an increase in the tax is not necessarily a sustainable source of revenue into the future.

“The first year is likely to be a watermark or close to it,” he told the committee.

Walczak said the state’s tobacco tax revenues show an increase in 2004, the year after the state’s most previous tax increase. Since, Walczak said revenues have leveled. 

“There’s a lot of people talking about the tobacco tax,” House Finance Chair Eric Nelson said Tuesday. “I think now is the time to look at many things and that’s one of them.”

Senate Minority Leader Jeff Kessler agreed. Kessler introduced a bill to increase the tax during the 2015 session and said he plans to propose another in 2016 with a dedicated source.

“I think we need to raise [the tax] and put some of that money into substance abuse programs in our local communities,” he said. “Every county needs a substance abuse treatment facility and centers and counselors to help these kids get off it.”

Tobacco Tax, VA Nursing Home Revived in Fireworks Bill Amendments

Senate bills that appear to have died in the House are being revived, so to speak, by Senators. Members of the Judiciary Committee made major changes to a fireworks bill Monday.

House Bill 2646 as approved by the House would allow consumer exploding or display fireworks currently banned in West Virginia to be sold at certain retail locations.

The original bill created retailer fees on top of the sales tax and dedicated 20 percent of the collections to be split between veterans programs, the state Fire Marshal’s Office and Volunteer Fire Departments.

The Senate Judiciary Committee revised the bill to include provisions of other pieces of legislation they’ve taken up this session, starting with a tobacco tax.

The committee’s version includes a 50 cent increase in the tax starting in July of this year and a second 50 cent increase in July of next year. The tax could mean up to $130 million new in the state’s coffers so members began dividing that money between state programs, starting with Sen. Bob Williams. 

“Because this is in a fireworks bill, [I moved] to dedicate $2 million of that tax to the volunteer fire departments of the state,” Williams said.  

For the 420 volunteer departments in West Virginia, that would mean an additional $5,000 per year. His amendment was approved by the committee.

The committee also added a provision dedicating $20 million from the first year of tobacco tax revenues to build a veterans nursing home in Beckley. That project is estimated to cost $25 million in state funds.

Twenty million dollars of the revenue earned from the tax in the second year would be dedicated to building a secure substance abuse treatment facility somewhere in West Virginia. 

“I think taking $22 million out of that [tax] and dedicating to certain very worthy sources will actually increase support for the bill,” Williams said after the committee meeting.

“Folks who didn’t support increasing the fireworks side of the bill will certainly support the volunteer fire departments and the veterans and I think it will certainly help improve support for the bill.”

The committee also included provisions allowing veteran organizations, like VFWs, and race track casinos to allow indoor smoking, something banned by most local county health departments.

With so many provisions and only a few days left in the legislative session to consider them, Williams warned it could be tricky to get the legislation approved.

“This time of the legislative session every legislator should be nervous. There are all kinds of things happening in both the House and Senate,” he said.

“It is a short period of time, but this is a very important piece of legislation. Now, it’s even more important that we’ve put the tobacco tax in it. So, I think it’s one that will get some attention by the leadership to make sure that it moves through the process as quickly as possible.”

Williams expects the bill to be put in a conference committee.

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