Ohio tax hike on non-cigarette tobacco proposed

A Democratic state lawmaker said he will try to convince Ohio Gov. Ted Strickland that taxes should be raised on non-cigarette tobacco products.

State Rep. Tyrone Yates of Cincinnati will try to put a proposal raising taxes on chewing tobacco, cigars and other non-cigarette tobacco products into the next two-year budget plan. Failing that, Yates will put the proposal into a separate bill. He wants to make taxes on non-cigarette products equal to the taxes on cigarettes, which are taxed at a rate of 55 percent of the wholesale price.

Smokeless tobacco products are taxed at 17 percent.
Gov. Ted Strickland, a Democrat, said he did not put any tax increases into his budget proposal because they would make the economic recession worse. He did, however, put dozens of new fees and fee increases into the plan.

"I can't see a rationale for not doing it, because it's a very healthy policy," Yates said Wednesday. "A number of constituents that I serve are starting to use these other tobacco products."

Yates said he will try to persuade the governor that his policy should be adopted. He said the tax increase could raise $73 million a year, which he wants to put toward tobacco prevention efforts — not toward helping the state out in a difficult budget period.

The tax hike would help relieve pressures on the budget, however, by reducing the state's Medicaid expenses, Yates said.

"The governor does not believe a tax increase would be productive at a time that so many Ohioans are struggling," said Strickland spokeswoman Amanda Wurst.

The Investing in Tobacco-Free Youth Coalition has been pushing for the tax increase on non-cigarette tobacco products. Between 2000 and 2006, cigarette smoking among high school students has declined but there has been no similar decrease in the use of smokeless varieties of tobacco, advocates have said.