Jump to full article: Gainesville (FL) Sun, 2004-02-29
Intro: House Speaker Johnnie Byrd, R-Plant City, is an ardent foe of higher taxes.
But how does that mesh with the fact that a $100 million tax bill was recently approved by the House subcommittee on Trades, Professions and Regulated Businesses?
The bill (HB 405) would impose a 50 cents-a-pack cigarette tax on a group of tobacco manufacturers that were not part of the state's original settlement with the industry in 1997. The state reached the multibillion-dollar settlement with the cigarette companies after filing a lawsuit alleging smoking was contributing to higher public health costs in programs like Medicaid.
The state's settlement was with the big four tobacco companies, Phillip Morris, R.J. Reynolds, Brown and Williamson and Lorillard, that dominate the market.
But in recent years, smaller companies have increased their share of the Florida market to as much as 15 percent, apparently in part because they can offer cheaper products since they aren't paying a portion of the settlement that the larger companies must pay.
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