The State reports: Backlog may snuff cigarette tax hike

Advocates of raising the state’s lowest-in-the-nation cigarette tax are worried a legislative backlog could prevent the bill from becoming law until the Legislature returns next year.

The Senate Finance Committee today is expected to vote on the plan, which would raise the tax by 50 cents a pack. The $139 million the tax is expected to raise would help employers purchase health insurance for low-income employees, or for those employees to purchase insurance directly.

The bill has widespread support, but lawmakers said the delays over payday lending, stimulus money and other legislation mean the cigarette tax might run out of time this session.

“It’s a very real possibility,” said Sen. Harvey Peeler, R-Cherokee. “It’s not an impossible jump, but there’s a lot of things ahead of it.”

Peeler said he has heard little opposition to the bill so far. Sen. Thomas Alexander, R-Oconee and chairman of the subcommittee studying the bill, expected minor changes to the House plan.

Lawmakers said one change would use tax revenue to fund the Hollings Cancer Center and another amendment might change the way smokeless tobacco products are taxed.

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