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South Carolina House Passes Tobacco Tax Increase
May 23, 2008

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News Summary

The South Carolina House of Representatives has narrowly approved legislation calling for a 50-cent-per-pack tax increase on cigarettes, but Gov. Mark Sanford says he will veto the measure, The State reported May 22.

The bill, which was approved 60-58 in the House and previously passed the state Senate, calls for using about half of an estimated $160 million in tax revenues to expand Medicaid health coverage for the poor, most of the rest to help poor workers buy health insurance, and allocates $5 million for smoking prevention.

Sanford says he wants the tax increase offset with other tax cuts and objected to expanding Medicaid by using a revenue source that will likely decline over the years.

Polls have shown that most state residents favor raising the current 7-cents-per-pack cigarette tax. The state Senate appears to have enough votes to override a Sanford veto, but House backers would have to pick up at least 23 more votes in order to do so.

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