The Chairman of the Idaho Tax Committee, better known as Rep. Dennis Lake announced last week that he will sponsor a bill which would increase the sales tax currently imposed on the sale of tobacco by $1.25 per pack. If the bill passes, the additional revenue generated would go to fund Medicaid.
The Chairman admitted the bill is a work in progress and would not pass if it was presented in its current form. However, we will continue to monitor this bill as soon as it is introduced to the Idaho Legislature.
In other news, some legislators in Idaho have begun to advocate for cigarette taxes to be imposed on Native American reservations. Part of the idea is to prevent non-tribal members from driving to the reservations to purchase cigarettes in order to avoid the 57 cent per pack tax currently imposed on cigarette sales. It seems anti-smoking advocates support the bill, while the tribes oppose it, for fear it will reduce overall tobacco sales. The bill is due to be heard by the House Revenue and Taxation Committee.