Jump to full article: AP, 2008-12-18 Author: DENA POTTER, Associated Press Writer
Intro: Two of the nation's top tobacco-producing states are weighing whether to raise cigarette taxes to plug budget deficits that have sent politicians scavenging for sources of revenue.
The governors of Virginia and Kentucky have each proposed raising their cigarette taxes -- each currently 30 cents per pack -- to help offset revenue shortfalls of $2.9 billion and $456 million, respectively.
Such a move was once unthinkable in Virginia, where Philip Morris runs the world's largest cigarette plant miles from the state Capitol, and ceiling murals in the rotunda include impressions of the golden-brown tobacco leaf.
"I wouldn't be surprised if all the tobacco-producing states aren't at least considering it before long," said Amy Barkley, who directs advocacy efforts in the major tobacco states for the Campaign for Tobacco-Free Kids.
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Lawmakers in the six major tobacco states -- North Carolina, Kentucky, Tennessee, Virginia, South Carolina and Georgia -- have historically been more reluctant than other states to turn to their cash crop for extra revenue.
But since 2002, 44 states and the District of Columbia have increased their cigarette taxes. Still, while the average tax nationwide is $1.11 per pack, it is 33.5 cents per pack in tobacco states.
"A while ago some people would have said there's no way there's going to be any tobacco tax increase in any of these states, but there has been and it's been because of these dire budget needs," Barkley said.
That doesn't mean the taxes have had an easy time passing.
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