Avalara Taxrates > Blog > Sales Tax Rate Changes > Philadelphia to Impose Cigarette Sales Tax, October 2014 - Avalara

Philadelphia to Impose Cigarette Sales Tax, October 2014

  • Sep 25, 2014 | Gail Cole

 Smokers in Philadelphia will pay more for cigarettes beginning October 1, 2014.

It’s official. Beginning October 1, 2014, a special $2-per-pack sales tax will be imposed on cigarettes sold in the city of Philadelphia.

Pennsylvania Governor Tom Corbett made clear his intention: “to sign the bill into law as soon as it reaches my desk so that the Philadelphia School District has the ability to ensure students have access to a safe and secure learning environment for the remainder of the school year.” He signed House Bill 1177 Wednesday morning.

The $70-90 million in revenue raised by the tax will go to the Philadelphia school district, which “has already seen widespread layoffs and school closures in recent years.” According to Philadelphia Mayor Michael Nutter, “The Philadelphia Cigarette Tax will provide critically important local revenue to the Philadelphia School District. With this action today, the district will not have to make the painful decision to cut a thousand school district jobs.” However, he reminds that it is “not sufficient funding to provide the high-quality education that every Philadelphia student deserves” (Philadelphia Business Journal).

The $2.00 per-pack Philadelphia cigarette tax is in addition to the state cigarette excise tax of $1.60 per-pack. Beginning October 1, a 20-pack of cigarettes sold in Philadelphia will be taxed at a combine rate of $3.60.

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photo credit: Cayusa via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
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.