UNITED STATES
US voters decided on tobacco taxation

In several US states, voters yesterday also decided on changes in tobacco taxation.

South Dakota voters have decided to nearly triple the state tax on cigarettes. With 72 per cent of the precincts reporting late Tuesday, Initiated Measure 2 received 61 per cent support to 39 per cent of voters opposed. The measure was written to set the state tax on cigarettes at US$ 1.53 a pack and boost the 10 per cent wholesale tax on other tobacco products to 35 per cent. Officials estimated the higher taxes would raise another US$ 40 million a year, which would double existing tobacco revenues. Opponents of higher tobacco taxes had said the tax increase would cause a huge loss in state revenues because cigarette sales would drop and many cigarettes would be smuggled into the state from places where they are cheaper.
Missouri voters rejected a measure Tuesday that would have amended the state's constitution to increase cigarette taxes. With 98 per cent of precincts reporting, 51.5 per cent of voters opposed Constitutional Amendment 3, and 48.5 per cent supported it. Almost 2.1 million votes were counted. The proposal would have increased Missouri's current cigarette tax of 17 cents a pack — the second-lowest state excise tax on cigarettes in the nation — to 97 cents a pack, a 470 per cent increase.
In California, voters decided against Proposition 86, which would have placed an additional US$ 2.60 tax on every pack of cigarettes to provide funding for emergency rooms, universal health insurance for children and anti-cancer and anti-tobacco programmes. According to results released Wednesday, 52 per cent of Californian voters rejected the measure with 48 per cent in favour. (pi)

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