April 1st, 2009

Smokers will have to pay more than ever before to light up in Pennsylvania today, or anywhere in the country for that matter. Today the Federal tax on cigarettes went up from 39 cents to $1.01 a pack, reports the Philadelphia Inqurier. 

 The increase means smokers in Pennsylvania will now pay $2.36 in federal and state taxes for a pack of cigarettes. In New Jersey, which is No. 2 in the nation in tobacco taxes, it will be $3.59, and $2.16 in Delaware.

But they are nowhere near New York City, where the price for a pack of cigarettes includes $5.26 in federal, state and municipal taxes.

Although the increase went into effect today, an unscientific survey in South Jersey found that some tobacco shop owners were not aware of the change and were still selling cigarettes at yesterday’s prices.

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Meanwhile, Governor Rendell is making the case to raise the state taxes on cigarettes from $1.30 a pack to $1.40, and also new taxes to cigars and smokeless tobacco products.  The Patriot-News explains that on these items the Gov. is proposing:

• A new tax of 36 cents per 10 cigars. 
• And a new tax on other tobacco products — 36 cents an ounce for smokeless and loose tobacco, such as pipe tobacco.

Reports the Patriot:

Pennsylvania is the only state that does not tax chewing tobacco, snuff or cigars, and people overwhelmingly support a tax on smokeless tobacco and increases in the cigarette tax, Rendell said. He has tried to make similar changes before, but the tobacco industry has a strong lobby in the state.

However, with projected budget deficits, the state could generate an additional $38 million by the end of the fiscal year in June 2010 with the new taxes.