Three Oregon lawmakers submitted a proposed initiative petition to the Oregon Secretary of State designed to make Oregon’s cigarette tax one of the highest in the nation. The proposal, titled the Family Health & Wellness Act of 2006, (initiative petition #112) would increase the cigarette tax by 60 cents over a five-year period and dedicate the revenue generated by the tax to the Oregon Health Plan and other health-related programs. The proposal would also increase taxes on other tobacco products, such as cigars and chewing tobacco.

Oregon’s current cigarette tax is $1.18 per pack ($11.80 per carton) or almost double the national average of 90 to 92 cents per pack. When fully implemented, the proposed initiative would increase Oregon’s cigarette tax 51% to $1.78 per pack ($17.80 per carton), making it the sixth highest in the country. Oregon current tax on other tobacco products is 65% of the wholesale price. The proposed initiative would increase the tax on other tobacco products to nearly 80% of the wholesale price, representing a 23% tax increase.

The proposal to make Oregon’s cigarette tax one of the highest in the nation is sponsored by Representative Billy Dalto (R-Salem), Representative Mitch Greenlick (D-Portland), and Senator Ben Westlund (R-Bend). The lawmakers argue the proposed tax increase will benefit Oregonians by providing additional revenue for the Oregon Health Plan and other state-sponsored health activities. Currently, 72.65% of all cigarette tax revenue is dedicated to the Oregon Health Plan. Under the proposal, nearly 80% of cigarette tax revenue would be dedicated to state-sponsored health programs. Only 5% of the revenue generated by the proposed tax increase would be dedicated to the Tobacco Use Reduction Account, which sponsors smoking cessation programs.

The Attorney General issued a certified ballot title at the end of December, which reads: Provides Health Insurance coverage to all Children under age 19 by raising tobacco product taxes.

ONSA strongly opposes the effort to increase Oregon’s cigarette tax. Members of ONSA’s Board of Directors have been engaged in challenging the ballot title, first, by submitting comments to the Oregon Secretary of State. The next step will be to challenge the petition’s ballot title before the Oregon Supreme Court. Members of the Board will continue to be involved as the challenge procedure moves forward. Watch for future updates on the ONSA web site.