While most states are still advocating increased tobacco taxes, a few states are beginning to understand the unintended consequences of such action and are starting to consider rolling back their excise taxes on tobacco.  

New Hampshire is considering legislation introduced by State Rep. Kenneth Welyer that would cut that state’s tobacco tax by ten cents.  The rationale behind this new initiative is that it will ultimately increase state revenues by curtailing the contraband activities related to higher taxes and the tendency for people to shop for these products in other states with lower tax rates.

And, New Hampshire is not alone in this new way of thinking.  To date, New Jersey, Oregon and Rhode Island are also considering such legislation.  AWMA has long opposed the increase in tobacco excise taxes arguing that such action leads to the unintended consequences that we see today – increased smuggling and other illegal activities related to tobacco – and that states actually see a decrease in their revenue as a result.