SC Cigarette Tax Hike Growing More Likely
Robert Kittle
News Channel 7
Thursday, May 5, 2005

North Carolina's proposed state budget includes a cigarette tax increase of 35 cents a pack, a surprise to many people because it's such a large grower of tobacco. If that increase passes, South Carolina will then have the lowest cigarette tax in the nation at seven cents per pack.

"I don't think it puts a whole lot of pressure on us. I think it just makes it obvious that we need to adjust our tax here according to what the rest of the country has done," says Rep. Rex Rice, R-Easley. He's already got a bill pending in the South Carolina House that would raise the cigarette tax here by 30 cents a pack.

The increase would raise about $100 million, with most going to Medicaid funding.

The bill is in a House committee and has virtually no chance of passing this year. House Speaker David Wilkins and others don't want to even talk about raising the cigarette tax until lawmakers pass a Medicaid reform bill to get a handle on rising costs.

"I think the first thing to do is focus on getting Medicaid reform," Speaker Wilkins says. "Once you do that, then you can focus on what level you should raise the cigarette tax." 

A Medicaid reform bill has a very good chance of passing this year, he says, which increases the chances of raising the cigarette tax next year.

He doesn't think any action in North Carolina will have an impact in South Carolina's legislature.  "We've been one of the top-five lowest for a long time. So I don't know whether it really makes any difference whether you're second-lowest or first or third-lowest. We're low."

Smokers have varied opinions about the prospect of having to pay more for their cigarettes. David Brownlee says of the 30-cents-per-pack proposal, "I think it's a little high. I think we probably could stand to raise it some." 

But as Buddy Skinner bought two packs at a Columbia convenience store Thursday afternoon, he said, "I'm all for it."

"Even though you're a smoker?" we asked him.

"Yes! Because I'm a smoker! Get it out of my system and back on the farm where it belongs."

Bill Goodwin of Columbia, another smoker, had a similar thought. "I think it's a good idea. Stop a lot of people from smoking. I need to quit," he says.

 

This story can be found at: http://www.wspa.com/servlet/Satellite?pagename=WSPA%2FMGArticle%2FSPA_BasicArticle&c=MGArticle&cid=1031782551458&path=!reports!topstories

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