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Committee hears $1-per-pack cigarette tax increase; health groups urge passage, retailers warn of cross-border effects
Summary
Representative Melody Cunningham’s HB 826 would raise the state cigarette tax by $1 per pack. Health groups, pediatricians and youth witnesses urged the committee to approve the increase citing public-health gains and Medicaid savings; retail and convenience-store groups opposed it, warning of cross-border purchases, smuggling and negative impacts on small businesses.
Representative Melody Cunningham opened HB 826 asking the committee to raise the tax on combustible cigarettes by $1 per pack, arguing Montana has not adjusted the tax in 21 years and that price increases reduce smoking and initiation among youth. "This bill proposes a $1 increase in tax on combustible cigarettes," Cunningham said, noting studies showing price sensitivity and citing a $511 million annual estimated cost of smoking to Montana and $87.2 million in Medicaid costs.
Youth witnesses and public-health organizations provided the bulk of proponent testimony. Students…
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