News
Gloor proposes increase in tobacco tax
Tuesday, January 22, 2013
Grand Island Independent
State Sen. Mike Gloor of Grand Island proposed legislation on Tuesday that would raise the state's tobacco tax by 72 cents on a pack of cigarettes.
That would bring the total tax up to $1.36.
"That's equal to Iowa's," Gloor said from his legislative office. "We're still, with an exception or two, pretty low compared to most of our contiguous states and those states that are in the Midwest.
"This gets us back up a little closer to average when it comes to looking at other states and what their tobacco tax is at," he said.
Gloor estimated that LB439 would generate about $66 million in new revenue, which could be used for a variety of health-related costs. He wants $28 million to go to a Medicaid rate stabilization fund to benefit health care providers and physicians who have seen service reimbursement rates drop.
Another $23.5 million would go to shore up the health care cash fund that was created from a multi-state settlement with tobacco companies that Nebraska accepted in 1998. The fund's long-term sustainability had been jeopardized by a downturn in markets and interest rates.
Gloor has proposed that $5 million of the new revenue go toward tobacco control and prevention -- a near doubling of such spending for the state. He also wants $5 million to go toward providing a $500 tax credit for first responders who undergo training and serve their communities a set number of hours each year. That tax credit is outlined in a companion bill, LB440, which Gloor also introduced on Tuesday.
Nearly $3 million would go toward cancer research at Creighton University and the University of Nebraska Medical Center. The remaining new revenue would go to the state's general fund, as would the tax collected on other tobacco products, such as snuff, chew and plugs.
Gloor announced prior to the Jan. 9 start of the legislative session that he would bring back a tobacco tax proposal.
Two years ago, lawmakers rejected his proposal to raise the tobacco tax to a total of $1.99 per pack.
"It's an important public health issue for me," said Gloor, who is a retired hospital administrator. "With all the years of experience I had dealing with people's health problems related to years of tobacco use ... I'd be remiss if I didn't say I know long-term that this can make a difference in the health of Nebraskans and the cost to Medicaid for taking care of people with tobacco-related illnesses."
Although the proposed increase this year is less, Gloor said, he still believes it to be enough to discourage smokers from continuing their habit.
"The biggest impact has always been on youthful smokers, who can't afford it and either can't keep it up or (will) give it up," Gloor said.
