Proposition B - Tobacco Tax Increase
In the third of four discussions as part of our town hall meeting about statewide ballot issues we take a look at Proposition B, concerning a tobacco tax increase.
Host Don Marsh talks with Dudley McCarter, an attorney and board member of Missourians for Health and Education, and Ron Leone, the Executive Director of the Missouri Petroleum Marketers & Convenience Store Association.
McCarter supports Proposition B and Leone opposes it.
Official Ballot Title: (source: Missouri Secretary of State website)
Shall Missouri law be amended to:
- create the Health and Education Trust Fund with proceeds of a tax of $0.0365 per cigarette and 25% of the manufacturer's invoice price for roll-your-own tobacco and 15% for other tobacco products;
- use Fund proceeds to reduce and prevent tobacco use and for elementary, secondary, college, and university public school funding; and
- increase the amount that certain tobacco product manufacturers must maintain in their escrow accounts, to pay judgments or settlements, before any funds in escrow can be refunded to the tobacco product manufacturer and create bonding requirements for these manufacturers?
Estimated additional revenue to state government is $283 million to $423 million annually with limited estimated implementation costs or savings. The revenue will fund only programs and services allowed by the proposal. The fiscal impact to local governmental entities is unknown. Escrow fund changes may result in an unknown increase in future state revenue.
The event is sponsored by Beyond November, a collaboration of St. Louis Public Radio, the Nine Network of Public Media and the St. Louis Beacon along with FOCUS St. Louis®