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Senate Endorses Bill to Increase Tobacco Taxes

Senators endorsed the bill 28-22 on second reading Thursday

By Dillon Tabish

HELENA — The Montana Senate has endorsed a bill that would increase taxes on cigarettes and other tobacco products and, for the first time, impose a tax on e-cigarettes.

The money would be used to help pay for raises for home health care workers for the elderly and disabled who are covered by Medicaid.

Senators endorsed the bill 28-22 on second reading Thursday. It faces a third reading before being moved to the House.

The bill would increase the tax on a pack of cigarettes from $1.70 to $3.20 and increase the tax on a can of moist snuff from 85 cents an ounce to at least $3.20. The tax on all other tobacco products would increase from 50 percent of the wholesale price to 74 percent. The change would take effect on May 1.