Montana bill introduced to increase direct care salaries by expanding tobacco tax
A bill to raise the tax on cigarettes by $1.50 a pack and start taxing electronic cigarettes was heard in committee Monday with lengthy testimony from supporters and opponents.
In addition to increasing taxes on cigarettes by a dollar amount, all other forms of tobacco, including e-cigarettes for the first time, would see a tax increase of 24 percent. Senate Bill 354 intends to lower healthcare costs by encouraging people to stop using tobacco products and funnel a portion of the revenue to increase the salaries of direct care workers providing Medicaid services. Under SB 354, carried by Sen. Mary Caferro, D-Helena, direct care workers would be paid $10.80 an hour by October 2017. The rate would gradually increase to $13.80 by October 2018.
“Tax policy with a purpose works,” Caferro said. “We know we have to do something about the community services. They are collapsing.”
The existing tobacco tax is distributed to several different accounts, with 44 percent going to a health and Medicaid account, eight percent to an account for maintaining veterans facilities, 2.8 percent to long range buildings and the rest to the general fund. That formula is not altered by the bill. The additional revenue to direct care workers will come out of the health and Medicaid account, Caferro said.
Read more: http://helenair.com/news/politics/state/bill-introduced-to-increase-direct-care-salaries-by-expanding-tobacco/article_02555311-3780-5029-8f26-555f2d901e98.html
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Montana bill to raise tobacco, e-cig taxes draws big crowd on both sides
HELENA — Dozens of people squared off on a bill to raise the tax on tobacco products and impose a new tax on a key component of e-cigarettes.
At issue before the Senate Taxation Committee was Senate Bill 354, by Sen. Mary Caferro, D-Helena, in a packed hearing room in the old Supreme Court chambers.
Her bill would raise the current $1.70-a-pack state tax on cigarettes by $1.50 to a new rate of $3.20 a pack. Taxes on other tobacco products such as spit tobacco would rise to 74 percent of the wholesale price from the current 50 percent. The liquid used for e-cigarette or vape cigarettes would be taxed for the first time at 74 percent of the wholesale cost.
Health advocates testified for the bill, citing studies that show higher prices of tobacco products make it less likely kids will start smoking, and the new tax on e-cigarettes also would be a deterrent. Caferro said studies show 30 percent of kids use tobacco products, and 90 percent of long-term smokers started the habit as youths.
Read more: http://www.bozemandailychronicle.com/news/mtleg/montana-bill-to-raise-tobacco-e-cig-taxes-draws-big/article_4e00c611-3cee-5f28-ae43-9615ad2426c4.html