Ohio tobacco tax would be highest in Midwest under Governor’s plan

If the Ohio General Assembly approves Gov. Kasich’s budget plan to increase the state tobacco tax by $1, Ohio would have the highest tobacco tax in the Midwest (Source: “Ohio cigarette taxes would be highest in region under Gov. John Kasich's proposal,” Cleveland Plain Dealer, Feb. 2, 2015).

As part of his biennial budget proposal released this week, Kasich calls for the per-pack tax on cigarettes to increase from $1.25 to $2.25. The governor also proposes that e-cigarettes and other tobacco products, which are currently taxed less than cigarettes, to be taxed at the same rate.

The increases would generate an estimated $991 million over two years -- $528 million in 2016 and $463 million in 2017 -- to offset income tax cuts. Last year, lawmakers scrapped Kasich's 60-cent per-pack cigarette increase.

A $1 increase would put Ohio's tax higher than its neighbors: Michigan ($2), Pennsylvania ($1.60), Indiana ($1.00), Kentucky ($0.60) and West Virginia ($0.55).