Nevada May Double Cigarette Tax for Health

A coalition of health organizations is advocating for Nevada to nearly double its cigarette tax, raising it by $1.75 per pack. This measure, along with a proposed tax increase on other tobacco products to 47% of wholesale price, is estimated to generate an additional $65.8 million annually for the state. The coalition, including the American Cancer Society Cancer Action Network and the American Lung Association, presented these recommendations to the Interim Legislative Committee on Revenue on Wednesday. The proposal aims to allocate a portion of the new revenue to crucial tobacco prevention and cessation programs.

While Nevada's current cigarette tax is $1.80 per pack, the national average is $2.05. The coalition projects that the proposed tax hike would lead to a 12% decrease in youth smoking and prevent 4,000 children from becoming adult smokers. Despite concerns about declining tobacco use potentially offsetting revenue gains, historical data from other states indicates that similar tax increases have consistently resulted in overall revenue increases, albeit with predictable declines over time. Lawmakers are expected to reconvene in August to consider these policy recommendations for the 2027 Legislative Session.