Nevada Legislature: Cigarette tax would more than double under proposal


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Assemblywoman Sheila Leslie, D-Reno, introduced a bill Friday that would more than double Nevada's cigarette tax and pump the revenue into health programs for women and poor children.

AB255 would raise the state's existing 80-cent tax on packs of cigarettes to $1.80.

That is on top of the 60-cent increase just approved by the federal government which raised the total federal tax to $1 a pack. Together they would bring total taxes on smokes to $2.80. Coupled with the price increase announced recently by the tobacco companies, that would raise the total price of a pack to over $6.

Leslie said her bill was introduced on behalf of the American Cancer Society and "a long list of health organizations."

Using the Economic Forum's most recent revenue projections, the increase proposed in AB255 would generate $146 million a year. But that doesn't factor in the number of people who would quit if prices go up that much.

Leslie said fiscal staff has estimated actual revenue would be closer to $120 million a year.

The money would be dedicated providing medical coverage to low income, pregnant women, Medicaid and Nevada Checkup, the federally matched children's health program.

She said the money would support programs the state never has been able to properly fund, "and take the cap off Nevada Checkup."

That program, under the proposed budget, would be capped at its current 25,000 clients.

"There's definitely a nexus between tobacco taxes and health costs," she said. "Although we don't like the idea of tying a tax to a program, this does seem to make sense."

She said if the higher tax convinces smokers to quit, it's an added benefit.

"We know it's going to decrease smoking, and the consumer most susceptible to price is the teenager," she said.

Leslie said reducing teen smoking would have a "huge long-term impact" for the nation's health.

The bill was referred to the Taxation Committee for study.