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New Hampshire Governor Vows to Increase Tobacco Tax


 NH: Time May Be Running Out on Tobacco Tax Cut.

New Hampshire's newly elected governor has been in office less than one week, but she has already vowed to eliminate a controversial 2-year old tobacco tax cut.

In her inaugural address, Governor Maggie Hassan (D) said, "Cutting state support for public education in half while lowering the tobacco tax two years ago was short-sighted… and, if not quickly addressed, will impair our future economic prosperity." She received a standing ovation for the comment. However, N.H. Senate President Peter Bragdon (R-Milford) has noted that "[t]here's not a lot of excitement in the Republican caucus of the Senate to increase any taxes."

Revenue generated from tobacco taxes dropped $20 million in 2012, thanks to the repeal of a 10-cent-per-pack tobacco tax that took effect in July 2011. Politicians responsible for the tax cut hoped it would "increase state revenues by stimulating cross-border sales." In Massachusetts, tax on a pack of cigarettes is $2.51. The current tax on a pack of cigarettes in New Hampshire is $1.68.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.