Montana Tobacco Sales Tax, I-149 (2004)
The Montana Tobacco Sales Tax Initiative, also known as I-149, was on the November 2, 2004 ballot in Montana as an initiated state statute, where it was approved. The measure increased tobacco taxes by 140 percent to $1.70 per pack of cigarettes, 85 cents per ounce of moist snuff and 50 percent on all other tobacco products. The measure reserved 45 percent of revenue from these taxes for additional enrollment in the children's health insurance program, increased medicaid services and provider rates and a supplemental need-based prescription drug program, if created by the legislature, for certain groups, and programs to help small businesses provide employee health insurance. Remaining revenue was allocated to state veterans' nursing homes, the state building fund, and the general fund.
|Montana I-149 (2004)|
Election results via: Montana Secretary of State
Text of measure
The text of the measure can be read here
The initiative was sponsored by the organization Healthy Kids Healthy Montana and was supported by organizations including AARP Montana, American Cancer Society, American Heart Association and many more. Richard P. Argent of Healthy Kids Healthy Montana argued that:
- I-149's price increase will result in a 16.2% reduction in youth smoking.
- I-149 will help fund health insurance for Montana's children.
- Montanans will see significant health benefits from reduced tobacco use due to I-149.
- I-149 will save taxpayers millions in long-term disability and health costs caused by smoking.
The official opposing argument was prepared by Rep. Jack Ross, Ronna Alexander, Dan Atonietti and Mark Staples. In the argument, the following points were made:
- The cigarette/tobacco tax had just been raised by the state legislature from 18 cents per pack to 70 cents per pack. This tax increase alone posed a burden to Montanans; I-149 would significantly add to that burden.
- I-149 poses a threat to the Veterans' Homes in Montana as it places in jeopardy the amount of money that goes to them and may actually reduce their funding.
- I-149 creates a new multi-million dollar bureaucracy requiring millions in new spending. The bureaucracy will initially be funded by tobacco tax revenue, but as that revenue decreases due to decreased tobacco consumption, the bureaucracy will become a liability to all Montanans.
- I-149 will have a negative impact on Montana wholesalers and retailers as consumers will choose to purchase cigarettes/tobacco over the internet or illegally to avoid the high tax rate on tobacco. The opposition cited the Department of Revenue's findings that in Washington State, illegal (untaxed) sales accounted for nearly 40% of cigarette/tobacco sales due to Washington's high tobacco tax.
Major donors to the initiative included Healthy Kids Healthy Montana, who donated $240,800 to the measure. Opponents such as Veterans, Taxpayers, Montanans and Tobacco Retailers, Wholesalers and Manfacturers spent a total of $98,997 against the measure.
- Montana 2004 ballot measures
- 2004 ballot measures
- List of Montana ballot measures
- History of Initiative & Referendum in Montana
- Montana Constitutional Amendments
- Montana Initiative and Referendum
- Initiative No. 149
- High tobacco taxes won't make the problem go away
- Montana Secretary of State, "Historical Ballot Initiatives and Referenda," accessed August 5, 2014
- Montana Secretary of State, "Archive Publications," accessed August 5, 2014
- Montana Secretary of State, "2004 Montana Voter Information Pamphlet," accessed August 5, 2014
- Follow the Money, Montana I-49 Donations
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