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Montana committee hears $1‑per‑pack cigarette tax increase amid split on economic and public‑health effects
Summary
Rep. Melody Cunningham told the Appropriations Committee that a $1 tax increase on cigarettes would lower youth initiation and offset health‑care costs; retailers said the jump is regressive, risks smuggling and poses technical stamp‑implementation challenges. The committee heard competing fiscal and public‑health evidence but took no final vote in this hearing.
Representative Melody Cunningham, the bill sponsor, asked the Appropriations Committee to raise Montana’s cigarette tax from $1.70 to $2.70 per pack, saying public‑health research and state cost estimates justify the increase. "A dollar per pack is the lowest amount that you can raise tax and still by studies see economic and health benefits," Cunningham said during the hearing.
Opponents, led by Brad Longcake of the Montana Petroleum Marketers and Convenience Store Association, argued the change is regressive and would disproportionately affect low‑income Montanans and small retailers. Longcake warned that a 60 percent hike could spur smuggling and undercut small businesses; he also raised implementation concerns tied to existing tax stamps that reflect the current $1.70 rate.
The committee questioned how the tax would affect tribal distributions and the mechanics for wholesalers and retailers. Representative Fox asked whether the existing process that allows distributors to ship untaxed product to reservations would change; Longcake replied the bill would layer an additional dollar onto the current mechanism and said he did not have precise figures on distribution impacts at hand.
Public‑health proponents urged the measure. Jackie Simmons of the American Heart Association told the committee that tobacco taxes are among the most effective public‑health tools to reduce smoking and related costs.
Sponsor Cunningham acknowledged tradeoffs: she said the increase is aimed at reducing youth initiation and offsetting smoking‑related Medicaid costs, and that she was open to technical or percentage‑based alternatives. No committee vote on HB 826 was recorded in this hearing; staff and members indicated follow‑up questions about fiscal implementation and distribution to tribes would be needed.
