Questions about a proposed cigarette tax increase

Friday, February 6th 2004, 12:00 am
By: News On 6

(Oklahoma City-AP) -- House Republicans say they're thinking of cities and towns as they question a proposed cigarette tax increase.

Governor Brad Henry's proposal would drop state and local sales taxes on cigarettes in favor of a one-dollar excise tax. It would raise $400-million a year for health care.

Minority Leader Todd Hiett of Kellyville is worried that cities and towns that rely on the tax revenues would be hurt.

Henry says in a letter that the plan would compensate cities and towns for any sales tax revenue lost.

Henry writes that he wants to bring the issue to a vote of the people.

The measure, House Bill 2660, is pending in the House Revenue and Taxation Committee.