Tobacco Tax On The Legislature's Radar Again

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With Oregon lawmakers gathering in Salem in a week, one regularly used revenue idea is being touted again -- an increase in the tobacco tax.

The Tobacco-Free Coalition of Oregon says its survey found more than 70 percent of voters would agree to a $1 tax increase on each pack of cigarettes. 

The  survey by Davis, Hibbits & Midghall has a margin of error of plus or minus four percent.

Coalition director, Brett Hamilton, estimates the tax increase would raise about $80 million a year.

Brett Hamilton: "We're proposing it as an idea. We haven't spoken with any specific legislators as of yet. But we're hoping when they really start crunching the numbers they'll consider this as a possibility."

State tax currently makes up $1.18 of the cost of the pack of cigarettes, which means Oregon ranks 28th in the nation. 

Washington recently passed a $1 per pack increase, putting that state’s tax at more than $3 per pack. 

Cigarette makers Philip Morris and Reynolds American say higher taxes reduce sales, which translates to less tax revenue.

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