2007 Senate Bill 328

Increase cigarette and tobacco tax

Introduced in the Senate

March 1, 2007

Introduced by Sen. Ray Basham (D-8)

Increase cigarette and tobacco tax to raise the state cigarette tax by 5-cents a pack, and double the tax on cigars, noncigarette smoking tobacco, and smokeless tobacco to 64 percent of the wholesale price. This is one of a number of tax increases included in Gov. Jennifer Granholm’s Fiscal Year 2007-2008 budget recommendation, which is based on approximately $1 billion in tax increases. It would increase the taxes paid by citizens approximately $57 million.

Referred to the Committee on Finance

And discharged from committee to the Senate floor on March 15, 2007. The discharge means the bill could be put to a full Senate vote at any time. Reportedly, Senate Republicans might want to force a vote on Gov. Granholm's tax increase proposals, in the belief that not all members of the Governor's party support them.