The North Dakota Senate voted 26-21 Monday to raise taxes on tobacco and alternative products. Senate Bill 2281 would raise North Dakota’s cigarette tax from 44 cents per pack to 69 cents, and also impose a 31% tax on the wholesale purchase of cigars and a 28% tax on the wholesale purchase of alternative products.
North Dakota has not raised taxes on cigarettes in over 30 years and this increase would move the state from the third-lowest to the 10th-lowest state cigarette taxes in the nation. The increases would be used to establish a Tobacco Tax Distribution Fund, which would be slated to provide an estimated $12.9 million in grants to local public health units and $12 million to organizations providing 988 crisis hotline services.
The bill previously received a 5-1 recommendation to pass from the Senate Finance and Taxation Committee, and now must pass the House and receive the governor’s signature to become law.
