A group of anti-tobacco advocates couldn’t get a pair of tobacco tax increase bills through the North Dakota legislature last year, so this year they are asking voters to approve it. This week the North Dakota Secretary of State certified that the petition had gathered enough signatures and the proposal will appear on the November ballot.
The initiative, sponsored by Raise It For Health ND, seeks to double the tax levied on premium cigars and other tobacco products from 28% to 56% of the wholesale price. For a cigar with an MSRP of $9.50, the cost at the register will jump from $12.16 to $14.82 by halfwheel estimates.
The proposal also seeks an increase in the cigarette tax from $0.44 per pack to $2.20 per pack, and would eliminate special tax treatments such as weight-based taxing of some tobacco products.
Should the proposal pass, the money raised would be split between the state’s General Fund, the funds of individual cities, the Veterans Tobacco Tax Trust Fund and the Community Health Trust Fund. Raise It For Health ND estimates that the new taxes would bring in approximately $100 million per biennium.