Bentley proposes higher cigarette tax to heal Alabama budget

(AP Photo/Pat Wellenbach, File)

MONTGOMERY, Ala. (AP) — Gov. Robert Bentley has proposed a number of ways to raise revenue to heal Alabama’s ailing budget.

One possible way is a higher cigarette tax. Alabama lawmakers are considering two proposals that would raise cigarette taxes to fill a major hole in the state’s general fund.

Bentley’s proposal would raise the tax on a pack from 42.5 cents to $1.25.

A second proposal would raise the tax rate by 32.5 cents per pack.

Experts say higher cigarette taxes can lead to smuggling.

Alabama’s current rate is 20 cents lower than Tennessee, 26 cents lower than Mississippi, 92 cents lower than Florida and 5 cents higher than Georgia.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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