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Mass. cigarette tax could jump by $1 per pack
Tuesday, July 01, 2008 (GST)

BOSTON - Massachusetts smokers may have to start digging a little deeper in their wallets as soon as this week. BOSTON - Massachusetts smokers may have to start digging a little deeper in their wallets as soon as this week. Beacon Hill lawmakers were debating the final version of a bill to increase the tax on a pack of Cigarettes by a dollar. The change could take effect Tuesday. The House approved the measure Monday by a 93-52 vote after a brief debate and sent the bill to the Senate, where it was also approved by a 26-9 vote. Lawmakers were trying to rush the bill to Gov. Deval Patrick's desk in time for the tax to go into effect Tuesday, the start of the new fiscal year. Patrick said he wants to see the final version of the bill before deciding whether to sign it. "I'm inclined to support it, but I want to read it first," Patrick said on his way into a meeting with legislative leaders. The final version doesn't include a Senate proposal that would have ended a 1945 law setting minimum prices for Cigarettes. For example, Massachusetts retailers can't sell a pack of Marlboros for less than $4.97 or face fines of $500. The minimum prices will remain in effect. Supporters say the tax increase would help raise $174 million in revenues. They say the extra money will go to help cover the cost of the state's landmark health care law. They also defended taking up the final version of the bill one day before the tax was intended to take effect. "Among those who sell Cigarettes ... this has been an issue that has been the talk within the industry for many, many weeks," said Rep. William Straus, D-Mattapoisett. Opponents say the measure unfairly targets one group of people and will hurt small Massachusetts businesses that sell Cigarettes close to the New Hampshire border. "You hear that sound?" Rep. George Peterson, R-Grafton, said putting his hand to his ear during the House debate. "That's the big sucking sound as people travel over the border to buy their Cigarettes." Rep. Paul Frost, R-Auburn, said that the dollar-per-pack increase means a carton of Cigarettes in Massachusetts will end up costing $15 more in taxes than a carton in New Hampshire. He said it's unfair to try to balance the state budget by targeting smokers unable to quit. "Why are we doing this? We're picking on a certain group of people who are addicted to Cigarettes," he said. Senate Republican Leader Richard Tisei of Wakefield said the new tax sends the message that the state is relying on smokers to maintain their habit in order to fund the Commonwealth Care program. "If you smoke already, please continue to smoke and if you don't smoke, maybe you should start smoking," said Tisei, who opposes the tax increase. Sen. Harriette Chandler, D-Worcester, said the tax is designed in part to discourage smoking, even as it raises new revenues. "We are trying to curb smoking, but we also see this as a revenue source," she said. The cigarette tax was part of a larger tax package that included the closing of several so-called business tax "loopholes." Lawmakers opted to deal with the loopholes later so they could rush through the cigarette tax hike first.