Agenda - 03-05-2003 - 5c - Laserfiche WebLink

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s ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 5, 2003 Action Agenda Item No. 5- C, SUBJECT: Resolution In Support of An Increase In North Carolina's Tax On Cigarettes DEPARTMENT: Health PUBLIC HEARING: (Y /N) No ATTACHMENT(S): INFORMATION CONTACT: Resolution Rosemary Summers, ext 2411 TELEPHONE NUMBERS: Hillsborough 732 -8181 Chapel Hill 968 -4501 Durham 688 -7331 Mebane 336- 227 -2031 PURPOSE: To consider adopting a resolution to forward to Orange County's legislative delegation and the North Carolina General Assembly in support of increasing the tax on cigarettes. BACKGROUND: The Orange County Board of Health adopted a resolution at its last Board meeting that called for supporting a $.75 per pack increase in the tax levied on cigarettes. This same resolution has been adopted by the North Carolina Alliance for Health and by the North Carolina Association of Local Health Directors. The current tax on cigarettes in North Carolina is 5 cents per pack - 49th among all states. The resolution being proposed also includes a provision that these funds be used for health services or for reducing or preventing tobacco use. The benefits from increasing cigarette taxes by 75 cents per pack include the following: Decrease youth smoking by 16.1 % • 14,050 fewer smoking- affected births in North Carolina • 73,700 current adult smokers would quit in the State • $16 million saved over 5 years from fewer smoking- affected pregnancies and births • $25.3 million saved over 5 years from fewer smoking- caused heart attacks and strokes • Generate $540.7 million in state cigarette tax revenues each year • Generate $12.1 million in additional sales tax revenues each year (based on total price of pack) In a survey of states that have enacted significant tax increases from 1995 to 2000, research has shown that states have gained significant revenues (the lowest being South Dakota at $6.1 million and the highest being California at $555.4 million) and have contributed substantially to the decline of smoking (South Dakota 5.6% decline and California 18.9% decline).