Committee approves increase in cigarette tax and adds e‑cigarette/vaping tax in Senate Bill 2281

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Summary

The Senate Finance and Taxation Committee voted 5‑1 to give a do‑pass recommendation to Senate Bill 2281, which raises the state cigarette tax and extends a comparable tax to e‑cigarettes and vaping products.

The Senate Finance and Taxation Committee voted 5‑1 to recommend a due pass for Senate Bill 2281, a proposal that increases the cigarette tax and adds a comparable tax on electronic cigarettes and vaping products.

A sponsor explained the tax has not changed since 1993 and that the bill raises the per‑pack cigarette tax from 44 cents to 69 cents in the sponsor’s draft; it would also apply a comparable levy to vaping products and some electronic nicotine delivery systems. The sponsor cited neighboring states’ tax levels (Minnesota $3.04, Montana $1.70, South Dakota $1.53) as context.

Senator Wallin moved for a due pass, saying the state remains low compared with neighbors and that taxing additional products would deter youth use; Senator Rummel seconded. Senator Powers opposed the bill, arguing cigarette taxes fall disproportionately on lower‑income consumers and advocating attention to alcohol taxes and treatment funding instead. The clerk recorded a committee vote of 5 yes and 1 no, and a senator volunteered to carry the bill to the floor.

Committee testimony also referenced state health‑cost estimates and public‑health concerns, but the committee chose to advance the bill for further consideration.