Tell Your State Legislators to Vote NO on SB 40 – No Tobacco Taxes!
“We send a strong message to the marketplace that Utah will not be raising taxes and take money away
from those who are already hurting to salve the government wound”
Governor Gary Herbert
Governor Gary Herbert rejects a tobacco tax increase. Read the full article HERE.
Tobacco tax increases will not balance Utah’s budget.
Utah’s tobacco tax revenues DECREASED by over 15 percent after the federal government increased the tobacco tax in April 2009. Other states have raised their tobacco tax, and seen their tobacco tax revenues DECLINE.
– In 2007, New Jersey raised their tobacco tax by 17.5 cents, and had its tobacco tax revenue go down by $22 million.
– Arkansas raised the tobacco tax in 2009, and is anticipating a $10.3 million drop for FY 2010.
– Mississippi raised the cigarette tax last May, and is now projecting a decrease in $4.7 million in tobacco tax revenues.

An increase in Utah’s tobacco tax will divert sales to neighboring states.
In 1997 the Utah legislature increased the tobacco tax making the price of a carton of cigarettes in Utah $4.00 higher than in Wyoming. Price Waterhouse found in the four months following the tax hike, stores in Evanston, Wyoming increased cigarette sales increase 23 percent.

The tobacco tax violates the basic principles of good tax policy.
The Congressional Budget Office has found that tobacco taxes are the most regressive of all taxes. They apply a high rate over a narrow base and impact low-income families 15 times more than higher earning groups. These are the exact characteristics of BAD tax policy.

Who opposes SB 40?
Governor Gary Herbert
Utah Taxpayers Association
Utah Food Industry Association
Utah Petroleum Marketers  & Retailers Association