Lawmakers consider raising state’s cigarette tax

cigarette smoke

Gov. Robert Bentley has proposed a number of ways to raise revenue to heal Alabama’s ailing budget.

One possible way is a higher cigarette tax. Alabama lawmakers are considering two proposals that would increase cigarette taxes to fill a major hole in the state’s general fund.

Bentley’s proposal would increase the tax on a pack from 42.5 cents to $1.25.

A second proposal would boost the tax rate by 32.5 cents per pack.

Experts say higher cigarette taxes can lead to smuggling.

Alabama’s current rate is 20 cents lower than Tennessee, 26 cents lower than Mississippi, 92 cents lower than Florida and 5 cents higher than Georgia.

Republished with permission of the Associated Press.