Heineman: No Increase On Cigarette Tax

If the Legislature passes a bill to slap a whopping tax increase on cigarettes Gov. Dave Heineman says he will veto it.

The pending measure would boost the tax on a pack of smokes from 64 cents to $1.99.

Proponent say it would generate $100 million in additional state revenue. Nebraska faces a budget gap of up to $1 billion.

In an interview with the Associated Press, Heineman indicated he might have been willing to look at a higher tobacco tax under different circumstances.

Heineman has consistently said he opposes any tax increases during the 2011 session.

“. . . . It would be one thing if they were going to take the money and reduce taxes somewhere else,” the AP quoted Heineman as saying. “This bill is going to increase the cigarette tax to spend money. To me, it just doesn’t make sense.”

If the measure were passed, then vetoed, it would take 30 votes from the 49-member Legislature to override Heineman’s decision.

source: nebraska.statepaper.com