Senators back cigarette tax increase
Filed Under Alexander, O'Dell | 1 Comment
WALHALLA — A hot topic in the South Carolina Senate this legislative session is a measure to raise the state’s cigarette tax.
The state’s tax is the lowest in the nation at 7 cents a pack. Last year, the House approved legislation to increase the tax by 30 cents and sent it to the Senate for consideration.
“We are in the process of having a subcommittee that’s looking at trying to deal with increasing the cigarette tax,” said State Sen. Thomas Alexander, R-Walhalla, who represents Oconee County and the greater Clemson area in Pickens County.
Sen. Alexander is chairing a special committee looking at the cigarette tax issue in the Senate.
State Sen. Billy O’Dell, R-Ware Shoals, supports the 30-cent increase in the cigarette tax. Most fellow legislators support some kind of increase, he said.
“I think there’s a very good chance that a tax increase would pass,” he said. “I would support an increase in the 37 cents range at this point. It’s across the board. I saw a survey this week that showed people supporting anywhere from no increase to a dollar increase.”
South Carolina’s 7 cents-per-pack tax has not been raised since 1977.
“We’re looking at least to bring it up to what that 7 cents would be percentage-wise of a pack of cigarettes in 2008,” Sen. Alexander said. I’m chairing a special committee of the Finance Committee that’s dealing with the cigarette tax issue. I’ve been involved with it for several weeks now and will be continuing ongoing dialogue with the different committee members. The schedule is for us to report back to the full committee of finance in about three weeks.”
One sticking point with the proposed tax increase legislation is how the generated money will be spent.
“We want it to be a revenue neutral type of a program,” Sen. Alexander said. “We are looking at several different things in the framework of how the generated tax money would be spent. One area is affordable health care. We need accessible and affordable health care, especially for the uninsured citizens in South Carolina. The rate of uninsured citizens continues to grow at a rapid rate.”
Sen. O’Dell said he would like to see the additional revenue go to fund healthcare. He serves on the full committee, which will likely hear a recommendation from Sen. Alexander’s committee next week.
As soon as the full Senate approves the proposed cigarette tax increase legislation that Sen. Alexander’s special finance subcommittee is crafting then it will be sent back to the House for their consideration and more debate in the South Carolina Legislature.
Anderson Independent-Mail reporter Samantha Harris contributed to this article.
Anderson Independent Mail
Chad Dorsett
2/2/08
