Texas Cigarette Tax Increase Helps Oklahoma

Tuesday, February 13th 2007, 10:11 am
By: News On 6

OKLAHOMA CITY (AP) -- The state Tax Commission is expecting a nearly $5 million increase in tax collections on cigarettes sold at tribal smoke stores along the Texas border.

The reason is a one dollar per pack increase in the tax on cigarettes in Texas.

The smoke shops were selling cigarettes with a 6-cent per pack tax because the 41 cent per pack tax in Texas was lower than Oklahoma's tax.

But with the dollar-a-pack increase in Texas the smoke shops will be selling cigarettes with an 86 cent per pack tax.

Tax revenue on all tobacco products sold at tribal stores is expected to be nearly $35.5 million during the fiscal year starting July 1st.

The sales of cigarettes and other tobacco products statewide are expected to generate more than $242 million in taxes next fiscal year.