Convenience stores support, helped write cigarette tax hike proposal

Friday, March 1, 2013

After helping block three statewide votes over the last decade,the Missouri Petroleum Marketers and Convenience Store Association now has helped write a proposed cigarettes-only tax increase it can — and will — support.

“The voters were not saying no to any and all cigarette tax increases,” Ron Leone, the association’s executive director, told the Senate’s Ways and Means Committee Thursday morning.

“We believe the voters were saying no to the outrageous and unfair tax increases contained in those three initiative petitions.”

Missouri currently imposes a 17 cents per-pack tax on cigarettes. It’s the lowest tax in the nation — 13 cents less per pack than Virginia’s tax.

In 2002, Missouri voters defeated a proposed 55 cents-per-pack hike by a 1.7 percent margin.

In 2006, a constitutional amendment proposal was rejected by a 2.83 percent margin.

And last fall’s proposition to raise the excise tax by 73 cents per pack was blocked by a 1.6 percent margin of the statewide vote.

State Sen. John Lamping, R-Ladue, proposes raising the state’s excise tax by 13 cents, which then would match Virginia’s next-to-last 30 cents.

“This is (an) attempt to raise cigarette taxes in a politically palatable way,” Lamping told the committee. “The increase in cigarette tax is offset by eliminating (some income) tax brackets.”

Last year, Lamping proposed a tax increase to 36 cents a pack from the current 17 cents.

But his new proposal raises the tax by only 13 cents, effective in January 2019 — and it phases in the proposed increase, with a five-cent hike beginning Jan. 1, 2015; another nickel beginning Jan. 1, 1917; and the final three cents beginning Jan. 1, 2019.

Leone said his association opposed the previous increases because they were too big.

The new proposal “maintains the competitive tax advantage we have over our eight border states,” he explained, “which is, really, the only critical issue that I’ve dealt with in those three initiative petitions.”

He noted supporters of the three previous ballot issues would cite high taxes around the country and say Missouri’s proposed increase still wouldn’t get close to the high-tax states.

But, Leone added, “The only thing I care about is the ability for your constituent small businesses to continue to compete with their market area — which is the eight border states.”

Misty Snodgrass, the American Cancer Society’s Missouri government relations director, helped lead last fall’s campaign and led Thursday’s opposition to the bill “for many reasons.”

“First and foremost,” she said, “this will not reduce smoking rates; it will not save the amount of money that we spend on Medicaid ... because there won’t be a reduction in usage.”

She also objected to a provision in the bill that would cancel the tax increase if an initiative petition seeking an even higher tax is placed on the ballot for a statewide vote.

“That is taking the will directly out of the voters’ hands, and any organizations that would be in support of increasing the tobacco tax,” Snodgrass said.

But Leone and Lamping defended the “poison pill” provision in the new proposal, saying it’s an important part of the cigarette tax increase plan.

If a group wanted to raise the tax higher than lawmakers had approved, Lamping said, “They would be giving up revenue that already exists.”

He added: “The rationale is to keep the tax policy in the hands of the General Assembly — the General Assembly would decide if they’re going to raise the sales tax or the income tax or cigarette tax or a transportation tax.

“It would not be by ballot initiative.”

More like this story

RobHunterJohnson 2 months, 3 weeks ago

Do we grow tobacco in Missouri? Rob

Diogenes 2 months, 3 weeks ago

There is a small pocket of tobacco growing near Weston. According to MO Dept of Agriculture, tobacco accounts for less than 1/10 of 1% of the value of agricultural products produced in MO each year. Of more interest, Sen. Lamping appears to be earning the political contributions given him by Ron Leone and tobacco companies in the past couple of years. Since 2010, Lamping has received $500 from Leone's organization, $2,000 from Philip Morris; $500 from Xcaliber Tobacco; $500 from RJ Reynolds; $750 from Discount Smoke Shops; and $750 from U-Gas Convenience Stores (a big contributor in Leone's fight against Prop B to keep cig taxes low).

JCLifer 2 months, 3 weeks ago

We should legalize marijuana and grow lots of pot. Tax the hell out of it, and then Missouri could be a growing, improving state. We would have money to build nice new schools for our children. We would have money to build better roads, and even some high-speed rail.

This state is drowning in poverty. Growing marijuana makes so much sense to help our farmers and our dead economy.

RobHunterJohnson 2 months, 3 weeks ago

I will have to agree JC, Rob

JCLifer 2 months, 3 weeks ago

Republicans in the state legislature want to cut taxes even further. Our state is already at the bottom as compared to other states. How bad do they really want Missouri to get? Interstate 70 will be a gravel road? More poverty? More schools falling apart? No computers or internet?

Maybe it is just continued hatred of rural folks. Send what little remaining money to the KC and StL wealthy suburbs and let the rest of the state crumble?

It just goes to show that when things are real bad (#50 at the bottom), they can always get much worse...

connor 2 months, 3 weeks ago

Of course we are not at the top of the Bond Downgrade list or using IOU's like the Democrat run states now are we?

Must be doing something right.

RobHunterJohnson 2 months, 3 weeks ago

Should have been an extra dime on a gallon of fuel, back in 1992, no one would have even noticed! We would not be in the shape we are in now, road wise! Rob

JCLifer 2 months, 3 weeks ago

no kidding...

Or, instead of a flat $0.17 cents tax on each gallon, it should have been a percentage of the price. That way the tax would have kept up with inflation.

I am not for high taxes, but we gotta pay for what we have. If we don't take care of our stuff, it does crumble and get outdated.

connor 2 months, 3 weeks ago

The Cigarette tax had nothing to do with roads but was ultimately for more social spending.

As far as roadway infrastructure goes after the last few trips I have taken to St. Louis in January and February I actually question the need for an additional lane now. According to US fuel usage which has been dropping by about 11% per year since 2008 it may not be necessary and if growth does return it will be slow enough to adjust accordingly.

I also question if all the paved secondary roads are actually as necessary as they are made out to be as well.

Life and society is up and down. Growth and shrinkage. It is time to face the music we are shrinking and everything, yes including roads, will have to shrink accordingly. We will not be able to maintain the existing costs and also pay for what is needed to get us growing again. We are going to have to be selective with taxes as well as targets for those taxes.

Missourians cannot afford more taxes. We need the taxes we are already paying to be used intelligently and not wasted on social engineering experiments.

RobHunterJohnson 2 months, 3 weeks ago

Take that drive at 2:30 on a Friday afternoon, and you will wish you had that 3rd lane! Look at I 70 with a little bit of snow, or hyway 40 after a spring shower, get real MR dirt ROAD! Rob

connor 2 months, 3 weeks ago

Of course here is the difference. What I wish for my own convenience is irrelevant. What the numbers dictate overall is what is important. Liberal's cannot see that so they wish to appeal to emotional doomerism or isolated worst case scenarios an an attempt to make life better for only themselves.

Austerity is coming the Mr. Me-generation is gonna starve!

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