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Panel weighs governor—s proposed 50¢ cigarette tax increase; health and retailers outline trade-offs

2422259 · February 26, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

The committee heard testimony about a proposed 50¢ per-pack cigarette excise increase in Article 5. The administration estimated $4.4 million in additional revenue in fiscal 2026; health officials said higher prices reduce use while retailers and distributors warned of revenue decline and cross-border purchases.

Lawmakers questioned administration and public-health witnesses about the governor—s proposal to raise the cigarette excise tax by 50¢ per pack, and heard competing evidence about the revenue, health and business effects.

The administration—s presentation said the budget assumes $4.4 million in additional revenue in fiscal 2026, including a floor-stock tax on inventory, with lower net receipts in later years as consumption falls. Revenue staff said their models assume a decline in sales of roughly 1 million packs (from about 19.9 million to just over 18 million packs) under the proposal. Department of Revenue staff also noted Rhode Island—s current per-pack rate would…

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