LANSING, Mich. – Gov. John Engler and legislative leaders on Wednesday proposed increasing the cigarette tax by 50 cents.
The increase would raise the state tax on cigarettes from 75 cents to $1.25 per pack, making it the nation's third-highest, according to the National Conference of State Legislatures. The per-pack tax is $1.50 in New York, and $1.42 in Washington state.
It also would affect other tobacco products, such as chewing tobacco.
The tax hike is expected to generate $107 million a year for the school aid fund and $154 million for other parts of the budget, said Engler spokeswoman Susan Shafer.
The additional revenue would help lawmakers balance the $350 million general fund shortfall for the upcoming budget year.
House leaders were considering taking up the cigarette tax increase proposal.