North Dakota Tobacco Tax Increase, Initiated Statutory Measure 4 (2016)
North Dakota Measure 4 | |
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Election date November 8, 2016 | |
Topic Tobacco | |
Status![]() | |
Type State statute | Origin Citizens |
The North Dakota Tobacco Tax Increase Initiative, also known as Initiated Statutory Measure 4, was on the November 8, 2016, ballot in North Dakota as an initiated state statute. It was defeated.
A "yes" vote supported increasing taxes on tobacco products and using the generated tax revenue to fund veteran services and health services. |
A "no" vote opposed increasing taxes on tobacco products and using the generated tax revenue to fund veteran services and health services. |
Liquid nicotine products used for e-cigarettes would have been included as part of the taxed tobacco products.[1]
Election results
Measure 4 | ||||
---|---|---|---|---|
Result | Votes | Percentage | ||
![]() | 209,832 | 61.65% | ||
Yes | 130,508 | 38.35% |
- Election results from North Dakota Secretary of State
Overview
North Dakota tobacco status
As of July 2016, only three states had lower tobacco tax rates than North Dakota's 44 cents per pack (Georgia with 37 cents, Virginia with 30 cents, and Missouri with 17 cents). North Dakota voters have decided on three tobacco-related measures since 1920.
Initiative design
Initiated Statutory Measure 4 was designed to increase the tax on cigarettes from 44 cents per pack to $2.20 per pack and to increase the tax on all other tobacco products from 28 percent of the wholesale purchase price to 56 percent of the wholesale price. The definition of "tobacco products" would have expanded to include liquid nicotine and electronic inhalation devices.[1]
Measure 4 was designed to create a veterans' tobacco trust fund, which would have been funded by half of the new revenues. The remaining revenues would have been dedicated to a community health trust fund for a comprehensive behavioral health plan, county-level health services, and chronic illness prevention and control programs. No revenue from the increase would have been allocated to tobacco prevention or cessation programs.[1][2]
Background
Previous tobacco measures
In 2008, North Dakotans approved the first tobacco-related measure that had appeared on the ballot since 1920, when voters defeated a measure that would have legalized the sale of cigarettes and prohibited sales to minors. The initiative in 2008 established a statewide tobacco prevention program that was funded by tobacco settlement money. Four years later, voters approved a statewide smoking ban in most places of employment and all public places, including some outdoor areas.
Other state measures
Voters in three other states voted on tobacco tax measures in 2016 as well. California Proposition 56 was designed to increase the cigarette tax to $2.00 per pack, with revenues dedicated to spending on healthcare for low-income Californians. The Colorado Amendment 72 was designed to increase the tax on cigarettes to $1.75 per pack, with revenues dedicated to programs for tobacco education, veterans, adolescent behavioral health, and other health-related issues. Two competing measures appeared on the ballot in Missouri. Missouri Proposition A was designed to increase the cigarette tax from 17 cents to 23 cents per pack, while Constitutional Amendment 3 was designed to increase the cigarette tax from 17 cents to 60 cents per pack.
How does North Dakota compare to the rest of the country?
Below is a chart detailing the state tobacco excise tax in all 50 states, plus the District of Columbia, as of August 1, 2016. The federal government levied a $1.01 tobacco tax in 2016. In 2016, New York had the highest tobacco tax at $4.35 per pack of cigarettes. Missouri had the lowest tobacco tax at 17 cents per pack of cigarettes. The mean or average tobacco tax was $1.65.[3]
State | 2016 tobacco taxes | Rank |
---|---|---|
Alabama | $0.675 | 40 |
Alaska | $2.00 | 13 |
Arizona | $2.00 | 13 |
Arkansas | $1.15 | 33 |
California | $0.87 | 37 |
Colorado | $0.84 | 38 |
Connecticut | $3.90 | 2 |
Delaware | $1.60 | 24 |
Florida | $1.339 | 29 |
Georgia | $0.37 | 49 |
Hawaii | $3.20 | 5 |
Idaho | $0.57 | 45 |
Illinois | $1.98 | 18 |
Indiana | $1.00 | 36 |
Iowa | $1.36 | 28 |
Kansas | $1.29 | 31 |
Kentucky | $0.60 | 43 |
Louisiana | $1.08 | 34 |
Maine | $2.00 | 13 |
Maryland | $2.00 | 13 |
Massachusetts | $3.51 | 4 |
Michigan | $2.00 | 13 |
Minnesota | $3.00 | 8 |
Mississippi | $0.68 | 39 |
Missouri | $0.17 | 51 |
Montana | $1.70 | 21 |
Nebraska | $0.64 | 41 |
Nevada | $1.80 | 19 |
New Hampshire | $1.78 | 20 |
New Jersey | $2.70 | 9 |
New Mexico | $1.66 | 23 |
New York | $4.35 | 1 |
North Carolina | $0.45 | 47 |
North Dakota | $0.44 | 48 |
Ohio | $1.60 | 24 |
Oklahoma | $1.03 | 35 |
Oregon | $1.32 | 30 |
Pennsylvania | $2.60 | 10 |
Rhode Island | $3.75 | 3 |
South Carolina | $0.57 | 45 |
South Dakota | $1.53 | 26 |
Tennessee | $0.62 | 42 |
Texas | $1.41 | 27 |
Utah | $1.70 | 21 |
Vermont | $3.08 | 6 |
Virginia | $0.30 | 50 |
Washington | $3.025 | 7 |
Washington, D.C. | $2.50 | 12 |
West Virginia | $1.20 | 32 |
Wisconsin | $2.52 | 11 |
Wyoming | $0.60 | 43 |
This map is current as of September 18, 2016.
As of July 2016, only three states had lower tobacco tax rates than North Dakota's 44 cents per pack (Georgia with 37 cents, Virginia with 30 cents, and Missouri with 17 cents). North Dakota is also one of 14 states that has not increased their tobacco taxes in at least ten years. As of July 2016, the average state cigarette tax was $1.65 per pack, ranging from 17 cents in Missouri to $4.35 in New York. North Dakota's three neighboring states have significantly higher cigarette tax rates (South Dakota with $1.53, Montana with $1.70, and Minnesota with $3.00).[4]
Text of measure
Ballot language
The ballot language was as follows:[5]
“ |
This initiated measure would provide for a new veterans’ tobacco tax trust fund in North Dakota Century Code Chapter 37-14 to fund certain veterans’ programs. This fund, among others, would be supported by an increase in the excise tax on cigarettes from $0.44 to $2.20 per package of twenty cigarettes, as well as an increase in the excise tax on cigars from 28% to 56% of the wholesale purchase price at which the product is purchased by distributors. The excise tax on all other tobacco products is increased a commensurate amount. The measure also would create an inventory tax on cigarettes and tobacco products. All revenues received by the tax commissioner under this measure would be allocated among the State’s general fund, the veterans’ tobacco trust fund, and the community health trust fund. The measure would create and amend provisions in Chapter 57-36, including new definitions for inhalation devices, liquid nicotine, and tobacco products; prohibiting retailers from being distributors and requiring distributors to keep additional records; setting requirements for registration of liquid nicotine retailers; and regulating the alteration of liquid nicotine. Finally, the measure would repeal two provisions of current law related to an excise tax on cigarettes and the exemption for taxes on cigarettes and tobacco products given to occupants of the State’s veterans’ home and the state hospital.[6] |
” |
Measure analysis
The measure analysis was as follows:[7]
“ |
Initiated Statutory Constitutional Measure No. 4 was placed on the ballot by petitions circulated by a sponsoring committee. If approved, it would provide for a new veterans’ tobacco tax trust fund in North Dakota Century Code Chapter 37-14 to fund certain veterans’ programs. This fund, among others, would be supported by an increase in the excise tax on cigarettes from $0.44 to $2.20 per package of twenty cigarettes, as well as an increase in the excise tax on cigars from 28% to 56% of the wholesale purchase price at which the product is purchased by distributors. The excise tax on all other tobacco products is increased a commensurate amount. The measure also would create an inventory tax on cigarettes and tobacco products. All revenues received by the tax commissioner under this measure would be allocated among the State’s general fund, the veterans’ tobacco trust fund, and the community health trust fund. The measure would create and amend provisions in Chapter 57-36, including new definitions for inhalation devices, liquid nicotine, and tobacco products; prohibiting retailers from being distributors and requiring distributors to keep additional records; setting requirements for registration of liquid nicotine retailers; and regulating the alteration of liquid nicotine. Finally, the measure would repeal two provisions of current law related to an excise tax on cigarettes and the exemption for taxes on cigarettes and tobacco products given to occupants of the State’s veterans’ home and the state hospital. Voting “YES” means you approve the measure as summarized above. Voting “NO” means you reject the measure as summarized above.[6] |
” |
Estimated fiscal impact statement
The fiscal impact statement was as follows:[8]
“ |
The fiscal note prepared by the Tax Department states the statutory measure will become effective 30 days after the election, or December 8, 2016. The fiscal impact for this statutory measure is estimated to total $170.4 million through June 30, 2019, including an additional $28.7 million in revenue for the remainder of the 2015-17 biennium and additional revenue of $141.7 million for the 2017-19 biennium. The measure would result in a reduction in revenues deposited in the general fund of $4.1 million through June 30, 2019, but an increase in revenues that would be distributed as follows through June 30, 2019--$86.9 million to the veterans' tobacco tax trust fund, $86.9 million to the community health trust fund, and $700,000 to the state aid distribution fund and to cities.[6] |
” |
Full text
The full text of the measure can be found here.
Support
Initiated Statutory Measure 4 was sponsored by the coalition Raise it for Health North Dakota, chaired by Dr. Eric Johnson.[9]
Supporters
The Raise it for Health ND Coalition campaign website listed the following partners:[10]
(American Legion, VFW, AMVETS, VVA, DAV)
|
Individuals
- Wayne Paulson, State Commander of the Veterans of Foreign Wars[11]
Arguments
The Raise it for Health ND Coalition campaign website listed the following as benefits of Measure 4:[12]
“ |
|
” |
Criticism of opposition campaign tactics
Supporters filed a complaint on October 24, 2016, alleging that the Measure 4 opposition group, North Dakotans Against the 400% Tax Increase, used misleading information in its campaign material. Specifically, supporters claimed that the following aspects of the opposition's campaign were intentionally misleading:[13]
- The omission of the word "tobacco" from campaign materials
- The campaign's portrayal of Measure 4 as a "tax hike"
- The campaign's attacks on the Administrative Committee on Veterans Affairs
Opposition
Initiated Statutory Measure 4 was opposed by North Dakotans against the 400% Tax Increase.[14][15]
Opponents
- Mike Rud, North Dakota Retail Association president[16]
- Greater North Dakota Chamber of Commerce
- Altria Group Inc
- RJ Reynolds Tobacco Co.
Arguments
The North Dakotans against the 400% Tax Increase campaign website listed the following arguments against Measure 4:[14]
|
- Mike Rud, chairman of North Dakotans Against the 400% Tax Increase, wrote the following in opposition to the measure:[17]
“ |
When you add it all up, this proposal is poorly written, is bad tax policy and simply isn’t how we should manage tax money. On behalf of retailers, their families and their employees all across North Dakota, I ask you to vote no on Measure 4 this November.[6] |
” |
- Deanne Schatz wrote the following in a letter to the publication Inforum:[18]
“ |
If you read the document the supporters wrote, it isn't even clear that 5 percent will actually be spent to help smokers who want to quit. [...] Is it really necessary to levy this new tax on North Dakotans when we have funding already in the bank and no specific language saying that any of the new tax would be used for anti-smoking programs? That's enough to cause me to vote "no" on Measure 4.[6] |
” |
Media editorials
Support
- The Inforum editorial board wrote the following in support of Measure 4:[19]
“ |
By making smoking and other forms of tobacco much more expensive, the tax increase would significantly reduce tobacco use, and the number of nicotine addicts, over time. It also would raise money to help support the state's general fund and pay for public health programs, including support for behavioral health programs and chronic disease prevention and treatment. The Legislature has repeatedly failed to act. Now it's time for voters to do the job.[6] |
” |
- In 2015, the Fargo Forum editorial board wrote the following in support of raising taxes on tobacco products:[20]
“ |
North Dakota should raise taxes on tobacco products. The state’s tax is among the lowest in the nation (44 cents on a pack of cigarettes); indeed lower than some of the major tobacco-growing states. Raising the tax, which has been at an embarrassing low level for decades, comports nicely with North Dakota’s successful anti-tobacco public health efforts, and specifically would deter young people from buying cigarettes. Every state that has raised cigarette taxes has found it is a significant factor in preventing youngsters and young adults from buying.[6] |
” |
Opposition
- The Bismarck Tribune published an editorial in opposition to Measure 4, saying the following:[21]
“ |
Health and veterans programs serve a good purpose and an argument can be made for more funding. The Tribune believes, however, that the Legislature is in the best position to make funding decisions. How the new revenue created by Measure 4 is allocated should be decided by the Legislature. [...] Voters should reject Measure 4 and legislators should approve a higher tobacco tax in 2017.[6] |
” |
Campaign finance
Raise it for Health North Dakota registered to support Measure 4. The committee raised $22,086.26.[22]
North Dakotans Against the 400% Tax Increase registered in opposition to Measure 4. The committee raised $3.92 million.[22]
Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures | |
---|---|---|---|---|---|
Support | $4,125.00 | $17,961.26 | $22,086.26 | $10,330.01 | $28,291.27 |
Oppose | $40,600.00 | $3,889,020.83 | $3,929,620.83 | $2,906,283.22 | $6,795,304.05 |
Total | $44,725.00 | $3,906,982.09 | $3,951,707.09 | $2,916,613.23 | $6,823,595.32 |
Support
The following table includes contribution and expenditure totals for the committee(s) supporting the measure.[23]
Committees in support of Initiated Statutory Measure 4 | |||||
---|---|---|---|---|---|
Committee | Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures |
Raise it for Health North Dakota | $4,125.00 | $17,961.26 | $22,086.26 | $10,330.01 | $28,291.27 |
Total | $4,125.00 | $17,961.26 | $22,086.26 | $10,330.01 | $28,291.27 |
Donors
The following were the top donors to the support committee(s).[23]
Donor | Cash Contributions | In-Kind Contributions | Total Contributions |
---|---|---|---|
American Lung Association in North Dakota | $0.00 | $8,297.76 | $8,297.76 |
Odney | $0.00 | $6,267.50 | $6,267.50 |
OhFer Creative | $0.00 | $1,786.00 | $1,786.00 |
Tobacco Free North Dakota | $0.00 | $1,110.00 | $1,110.00 |
Opposition
The following table includes contribution and expenditure totals for the committee(s) in opposition to the measure.[24]
Committees in opposition to Initiated Statutory Measure 4 | |||||
---|---|---|---|---|---|
Committee | Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures |
North Dakotans Against the 400% Tax Increase | $40,600.00 | $3,889,020.83 | $3,929,620.83 | $2,906,283.22 | $6,795,304.05 |
Total | $40,600.00 | $3,889,020.83 | $3,929,620.83 | $2,906,283.22 | $6,795,304.05 |
Donors
The top donors to the opposition committee(s) were as follows:[24]
Donor | Cash Contributions | In-Kind Contributions | Total Contributions |
---|---|---|---|
Altria Client Services LLC & Its Affiliates | $0.00 | $2,762,016.01 | $2,762,016.01 |
R.J. Reynolds Tobacco Company | $0.00 | $1,001,798.15 | $1,001,798.15 |
Americans for Prosperity | $0.00 | $64,500.00 | $64,500.00 |
North Dakota Petroleum Marketers Association | $0.00 | $32,425.61 | $32,425.61 |
Suhr & LofgVets for Economic Freedom Trust dba Concerned Veterans for Americaren | $0.00 | $28,281.06 | $28,281.06 |
Methodology
To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.
Reports and analyses
Secretary of state analysis
The North Dakota Secretary of State's analysis of Measure 4 was as follows:[25]
“ |
Initiated Statutory Constitutional Measure No. 4 was placed on the ballot by petitions circulated by a sponsoring committee. If approved, it would provide for a new veterans’ tobacco tax trust fund in North Dakota Century Code Chapter 37-14 to fund certain veterans’ programs. This fund, among others, would be supported by an increase in the excise tax on cigarettes from $0.44 to $2.20 per package of twenty cigarettes, as well as an increase in the excise tax on cigars from 28% to 56% of the wholesale purchase price at which the product is purchased by distributors. The excise tax on all other tobacco products is increased a commensurate amount. The measure also would create an inventory tax on cigarettes and tobacco products. All revenues received by the tax commissioner under this measure would be allocated among the State’s general fund, the veterans’ tobacco trust fund, and the community health trust fund. The measure would create and amend provisions in Chapter 57-36, including new definitions for inhalation devices, liquid nicotine, and tobacco products; prohibiting retailers from being distributors and requiring distributors to keep additional records; setting requirements for registration of liquid nicotine retailers; and regulating the alteration of liquid nicotine. Finally, the measure would repeal two provisions of current law related to an excise tax on cigarettes and the exemption for taxes on cigarettes and tobacco products given to occupants of the State’s veterans’ home and the state hospital.[6] |
” |
Path to the ballot
The petition was submitted to the secretary of state on March 16, 2016, and approved for circulation on March 29, 2016. To qualify the measure for the 2016 general election, supporters had to collect 13,452 valid signatures by July 11, 2016.[26] Supporters submitted 22,840 signatures and 21,698 of them were verified by the North Dakota Secretary of State. Initiated Statutory Measure 4 qualified for the ballot on August 10, 2016.[27]
Cost of signature collection:
Sponsors of the measure hired signature gatherers to collect signatures for the petition to qualify this measure for the ballot. A total of $5,469.01 was spent to collect the 13,452 valid signatures required to put this measure before voters, resulting in a total cost per required signature (CPRS) of $0.41.[28]
Recent news
The link below is to the most recent stories in a Google news search for the terms North Dakota tobacco tax Measure 4 increase Initiative. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
State profile
Demographic data for North Dakota | ||
---|---|---|
North Dakota | U.S. | |
Total population: | 756,835 | 316,515,021 |
Land area (sq mi): | 69,001 | 3,531,905 |
Race and ethnicity** | ||
White: | 88.7% | 73.6% |
Black/African American: | 1.6% | 12.6% |
Asian: | 1.2% | 5.1% |
Native American: | 5.3% | 0.8% |
Pacific Islander: | 0% | 0.2% |
Two or more: | 2.2% | 3% |
Hispanic/Latino: | 2.9% | 17.1% |
Education | ||
High school graduation rate: | 91.7% | 86.7% |
College graduation rate: | 27.7% | 29.8% |
Income | ||
Median household income: | $57,181 | $53,889 |
Persons below poverty level: | 12.2% | 11.3% |
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in North Dakota. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here. |
Presidential voting pattern
North Dakota voted Republican in all seven presidential elections between 2000 and 2024.
Pivot Counties (2016)
Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, four are located in North Dakota, accounting for 1.94 percent of the total pivot counties.[29]
Pivot Counties (2020)
In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. North Dakota had three Retained Pivot Counties, 1.66 percent of all Retained Pivot Counties.
More North Dakota coverage on Ballotpedia
- Elections in North Dakota
- United States congressional delegations from North Dakota
- Public policy in North Dakota
- Endorsers in North Dakota
- North Dakota fact checks
- More...
Related measures
See also
- North Dakota 2016 ballot measures
- 2016 ballot measures
- North Dakota Legislature
- List of North Dakota ballot measures
External links
Support
Opposition
Footnotes
- ↑ 1.0 1.1 1.2 North Dakota Secretary of State, "Initiative Petition," accessed March 30, 2016
- ↑ Raise it for Health ND, "About the Measure," accessed August 26, 2016
- ↑ Campaign for Tobacco Free Kids, "State Cigarette Excise Tax Rates & Rankings," August 1, 2016
- ↑ Campaign for Tobacco-Free Kids, "Map of State Cigarette Tax Rates," July 14, 2016
- ↑ North Dakota Secretary of State, "Official Ballot Language for Measures Appearing on the Election Ballot," accessed November 4, 2016
- ↑ 6.00 6.01 6.02 6.03 6.04 6.05 6.06 6.07 6.08 6.09 6.10 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ North Dakota Secretary of State, "Analyses of Statewide Measures," accessed November 4, 2016
- ↑ North Dakota Legislative Council, "Report of the North Dakota Legislative Council," September 29, 2016
- ↑ Bismarck Tribune, "Coalition pushes tobacco tax measure," March 16, 2016
- ↑ Raise it for Health ND Coalition, "Partners," accessed September 26, 2016
- ↑ KXNews, "Coalition Seeks To Raise N.D. Tobacco Tax," May 9, 2016
- ↑ Raise it for Health ND, "The Benefits," accessed September 26, 2016
- ↑ Raise it for Health ND, "Measure 4 opposition repeatedly violates ND election law," accessed October 28, 2016
- ↑ 14.0 14.1 North Dakotans Against the 400% Tax Increase, "Vote No on 4 ND," accessed September 26, 2016
- ↑ KFGO, "Mike Rud on group's opposition of tobacco tax increase," August 22, 2016
- ↑ Washington Times, "Cigarette makers fight North Dakota tobacco tax hike," August 17, 2016
- ↑ Bismarck Tribune, "Measure 4 is bad tax policy for all of us in North Dakota," September 24, 2016
- ↑ Inforum, "Letter: Little Measure 4 money earmarked for anti-smoking," September 26, 2016
- ↑ Inforum, "Forum editorial: Time to raise the ND tobacco tax," August 15, 2016
- ↑ BreatheND, "Editorial: Raise Cigarette Tax in ND," February 12, 2015
- ↑ Bismarck Tribune, "Measure 4 not the way to raise tax," September 29, 2016
- ↑ 22.0 22.1 North Dakota Campaign Finance Online, "Committee search," accessed March 6, 2025
- ↑ 23.0 23.1 Cite error: Invalid
<ref>
tag; no text was provided for refs namedsup
- ↑ 24.0 24.1 Cite error: Invalid
<ref>
tag; no text was provided for refs namedopp
- ↑ North Dakota Secretary of State, "Analyses of the Statewide Measures Appearing on the Election Ballot November 8, 2016," accessed October 3, 2016
- ↑ North Dakota Secretary of State, "Ballot Petitions Being Circulated," accessed March 30, 2016
- ↑ Dickinson Press, "Tobacco tax hike measure approved for N.D. ballot in November," August 10, 2016
- ↑ North Dakota Secretary of State, "Raise it for Health ND," accessed September 26, 2016
- ↑ The raw data for this study was provided by Dave Leip of Atlas of U.S. Presidential Elections.
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