(GREAT FALLS) In November, Montana voters will decide on an initiative that will increase taxes on tobacco products.
Recently, two tobacco companies have thrown millions of dollars into the initiative, making it the second-most expensive campaign this year in the state.
Supporters of the initiative held a rally in Great Falls on Friday.
Among the supporters was Annie Tegen, the advocacy director for the Campaign for Tobacco-Free Kids.
“We’re here today to protect the next generation of youth in Montana from a lifetime addiction of tobacco,” Tegen said.
A coffin was placed outside the Cascade County Courthouse, filled with 1,600 toe tags, a number the group ‘Healthy Montana’ says signifies the number of Montanans that die a year from tobacco-related diseases.
“We feel like it’s a pretty powerful message. So we are using a powerful tool to really get that message across. This is serious. We are here to protect the next generation of kids and stand up to big tobacco,” Tegen said.
On the opposing side is the campaign manager for Montanans Against Tax Hikes, Charles Denowh.
In a statement to MTN he wrote, “I-185 is a massive new tax increase that permanently expands Medicaid but doesn’t allocate enough money to pay for it, leaving all Montanans on the hook for tens of millions of dollars per year. Montanans against tax hikes plans to run an aggressive campaign and make sure voters understand why they should reject i-185.”
Here is the full text of the ballot measure:
I-185 raises taxes on all tobacco products, amends the definition to include e-cigarettes
and vaping products, and dedicates funds. Taxes are increased by $2.00 per pack of
cigarettes for a total tax of $3.70 per pack. Taxes on moist snuff increase to the greater
of 83% of wholesale or $3.70 per 1.2 ounces. The tax rate increases by 33% of the
wholesale price for all other tobacco products including new taxes on e-cigarettes and
vaping products. I-185 eliminates the sunset date for expanded Medicaid services for
certain low-income adults, which otherwise ends June 30, 2019. I-185 dedicates a
percentage of these increased tax revenues for: certain health-related programs,
including some of the costs for Montana’s current Medicaid program; veterans’ services;
smoking prevention and cessation programs; and long-term care services for seniors
and people with disabilities.
New revenue from increases in tobacco taxes will generate $74.3 million per year by
2023. Revenues may decline as fewer people use tobacco. The State must pay a
percentage of the cost of the extended Medicaid services, which increases from 6.77%
in 2019 to a cap of 10% by 2021.
