Legislation introduced by Delegate Patrick Hope (D – Alexandria) last week, House Bill 160, was tabled by a subcommittee of the House of Delegate’s Finance Committee on Friday. As we highlighted last week, Del. Hope proposed raising the cigarette excise tax to $1.45 per pack (an increase of 383%) and raising the excise tax for other tobacco products to 50% of the wholesale price. In a statement issued last week, Del. Hope stated that while he was “disappointed” in the outcome, but he was not “surprised.” Despite the setback for this year, Del. Hope has indicated that he will propose similar legislation in 2013.
As a result of the subcommittee’s action on Friday, Virginia will continue to have the second lowest taxes on cigarettes and other tobacco products in the country—for at least the next year. Only Missouri has lower taxes on tobacco products.
Contributor: Craig Elkins