Northwest States Get More Tobacco Money

By Doug Nadvornick | Feb. 27, 2009 9:41 a.m. | Coeur d'Alene, ID

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Tobacco companies paid $19-million to the three Northwest states Wednesday. The cash is part of a $540-million that the companies withheld from the 46 states that were part of a huge tobacco settlement more than ten years ago.

Each year, the tobacco companies negotiate how much they’ll pay to reimburse state governments for tobacco-related health care costs. Then the companies write checks.But in 2006 there was a dispute. The companies wanted to reduce their payments.

They argued they were losing sales to the tobacco companies that aren’t part of the settlement. The states said no.

The companies paid less anyway and put the rest into a “disputed payments account”. Even though that issue is not yet resolved, the tobacco companies agreed to release some money.

Idaho's share is almost $2 million. Washington will get $11 million. Oregon will get about $6 million.

Copyright 2009 Spokane Public Radio

© 2009 Spokane Public Radio

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