CHARLESTON, W.Va. — Gov. Earl Ray Tomblin’s proposal to increase cigarette taxes by 65 cents per pack won approval in the state Senate on a 24-7 vote Saturday.
“It’s essentially the same bill as what we’ve debated previously as opposed to the 45-cent measure we passed,” said Senate Finance Committee Chairman Mitch Carmichael (R-Jackson).
The bill (SB1012) includes a tax increase on smokeless and pipe tobacco products and a seven percent hike on the tax for vapor liquid for the newly popular electronic cigarettes. However, Carmichael told the body Tomblin made a concession in the vaping tax to address concerns raised by the vaping industry of a new inventory tax on their products.
“I think he’s made a great compromise with this,” said Carmichael. “He allows for a two-month reporting period before it begins to become operational. That should address the concerns of those in the vaping industry who were worried about being hit with an inventory tax right off the bat.”
The measure is expected to generate an additional $100 million annually, though some Senators raised questions about how the bill settled on 65 cents per pack.
“The spot in which we don’t disadvantage our border counties and cross-state purchases,” Carmichael said. “Yet, we have a tax that is commensurate with utilization of the product.”
Initially the Senate passed a $1 per-pack increase on cigarettes which failed in the House of Delegates. The Senate later agreed to a 45-cent increase which also failed.
The bill sent to the governor last week included no increases on the tobacco tax.
The House Finance Committee passed the bill on a voice vote Saturday evening and sent it to the floor for consideration. There could be a floor vote during the Sunday floor session that begins at 2 p.m.