PANEL OKS 20-CENT TAX ON PACKS OF CIGARETTES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, February 3, 1993                   TAG: 9302030189
SECTION: VIRGINIA                    PAGE: B3   EDITION: STATE 
SOURCE: Staff and wire reports
DATELINE: RICHMOND                                LENGTH: Short
PANEL OKS 20-CENT TAX ON PACKS OF CIGARETTES
A bill to increase the state cigarette tax from 2.5 cents per pack to 20 cents statewide was endorsed narrowly Tuesday by the Senate Finance Committee. Even the sponsor said its prospects for passage are slim, however.
Sen. Elliot Schewel, D-Lynchburg, the bill's sponsor, said the higher cost of cigarettes would discourage young people from starting to smoke. He said that even if the tax passed in both the Senate and House of Delegates, however, Gov. Douglas Wilder probably would veto it.
The committee voted 8-7 to send the bill to the full Senate.
The bill would overturn all local cigarette taxes in favor of the state tax. Schewel said cities like Norfolk, which now imposes a 25-cent local tax, would be reimbursed for any loss in their revenues.
The legislation actually would set a 1-cent tax on each cigarette. Most packs hold 20 cigarettes.
Keywords:
GENERAL ASSEMBLY 1993
Memo: shorter version ran in the Metro edition.

by Archana Subramaniam by CNB