Cigarette Taxes in North Carolina

Higher Taxes Affect You

ALERT:Governor Purdue is proposing an outrageous $1.00 per pack increase in the state’s cigarette tax. She wants to use the money for new government spending. It is important that you contact your North Carolina representatives today and make your voice heard.

• Call your state representatives: 1.866.658.8337 (toll-free)
• Email your state representatives

Tax Facts

The excise tax on one pack of cigarettes in North Carolina is currently $0.45.

Take a closer look at the cigarette tax dollars being collected in North Carolina in FY2008.

	Excise Taxes	Sales Taxes	Tobacco Settlement Payments	Total Smoker Payments FY2008
State: Local:	$233,795,000 $0	$106,878,000 $0	$160,000,000	$500,673,000

Total tobacco settlement payments to North Carolina to date (1998-2008): $1,358,600

Economic and Tax Profile of North Carolina Smokers

The impact of smoker payments on the incomes of working families was disproportionately greater — more than THREE TIMES higher — than the impact on the minority of smokers who have higher incomes.

• North Carolina smokers' median household income: $33,437
• North Carolina non-smokers' median household income: $48,610
• 38.2% of North Carolina smokers had household incomes LESS THAN $25,000
• Only 14.8% of North Carolina smokers had household incomes EQUAL TO or GREATER THAN $75,000

Average Tobacco Taxes and Payments

Tax and settlement payment liability paid only by smokers in FY2008 were:

Total average paid per North Carolina smoker in excise and sales taxes:	$222
Cost per North Carolina smoker for settlement payments to North Carolina:	$104
Total annual payments to North Carolina per smoker:	$326

Smoker Payment Comparisons

Payments by North Carolina smokers in FY2008 were:

• More than twice as large as FY2008 beverage tax revenues ($218.8 million)
• Three times as large as FY2008 inheritance tax revenues ($164.5 million)

North Carolina smoker payments of OVER $500 MILLION were large enough to support FY2008 funding for:

• Agriculture and Consumer Services ($74.4 million) AND Environment and Natural Resources ($205.2 million) AND Child Health ($59.4 million) AND Vocational Rehabilitation ($45.1 million) AND Education Access Rewards North Carolina ($27.6 million) AND Class Size Reduction ($37.5 million)
  OR
• Public Health ($192.5 million) AND Juvenile Justice ($158 million)

Help prevent more state tobacco tax increases.
Call 1.866.658.8337 or email your state representative.