House budget panel to vote on proposed cigarette tax increase
Alabama business leaders and advocates testified Tuesday before the House’s General Fund budget committee about the economic and health consequences of increasing the cost of tobacco products purchased in the state. The public hearing was to consider Rep. Patricia Todd’s House Bill 572, a proposal to increase the state tax on tobacco products by 25 cents. Advocates supporting higher cigarette taxes warned the panel that the bill didn’t go far enough to bring substantive health and economic benefits. Kimble Forrester, executive director of Alabama ARISE, said that an increase of at least 55 cents per pack is necessary for the state to see a decrease in health costs, as well. “The studies I’ve seen say that you have to raise taxes enough by at least 10 percent per pack to give people some sticker shock,” he said. Others spoke against a higher tax, warning that the increase would send consumers across state lines to purchase tobacco at lower costs per pack. A retailer from Andalusia said that dozens of his customers come from neighboring Florida “because it’s $10 a carton cheaper.” House Bill 572 is the smallest of three proposed cigarette tax increases lawmakers have considered. Originally, Todd had proposed a tax increase of 32.5 cents. And as part of his budget plan, Gov. Robert Bentley had proposed an 82.5-cent tax increase on cigarettes. Todd’s proposal was one of several before the committee today as lawmakers try to agree on a path to overcome an estimated $541 million shortfall in the state budget. The committee also heard comment on legislation to increase taxes on car sales and car rentals, along with two proposals to cut state employee pay through furloughs or by cancelling annual bonuses. The committee chairman indicated that the panel will reconvene on Wednesday for a formal vote.
This week at the Statehouse: Legislative Days 19-20
The talk of the town this week is expected to be about the gaming proposals Sen. Del Marsh drafted and sent home to members last week and the Poarch Creek Indian Tribe’s counter offer. Then there’s the lawsuit that the State Auditor Jim Zeigler has announced he’ll drop Monday to challenge Attorney General Luther Strange for his decision not to challenge school boards from using tax payer money to lobby for tax increases. Here are some of the proposals expected to move in the statehouse this week: Sen. Cam Ward’s comprehensive prison reform bill Senate Bill 67 could go to the House floor was early as Tuesday, according to reports from AL.Com. On Tuesday in the House Ways and Means Committee there will be four bills up. They include House Bill 572 which would raise the cigarette taxes from $.425 a pack to $.675 a pack, House Bill 267 which would raise the rental car tax from one-half percent to four percent and House Bill 590 which would authorize the state skipping the 2015-2016 longevity pay paid out at the beginning of December for state employees. On Wednesday, an education policy panel will hear comments on House Bill 243 to authorize local boards of education to admit or readmit students up to age 21 into the 12th grade. That same panel is expected to vote on Erin’s Law House Bill 197, a proposal to provide age-appropriate instruction in public schools on recognizing and avoiding child sexual abuse. The health committee is slated to vote on a trio of proposals governing abortion on Wednesday. The committee declined to vote last week following public hearings on the Fetal Heartbeat Act, the Healthcare Rights of Conscience Act, and a proposal to bar clinics within 2,000 feet of a public school. Keep checking ALToday.com for updates. *Article updated to reflect tax bills heard on Tuesday not Wednesday.
