Taxing tobacco.

• Position: TRENDS AND TRANSITIONS - Brief article

The recession has created serious revenue shortfalls, and some states are partially plugging the gaps by raising taxes and fees. Tobacco tax increases account for about $1.9 billion 6.7 percent--of the $28.5 billion in total tax increases enacted for FY 2010. Taxes on tobacco take two forms: taxes levied on cigarettes on a per pack basis, and taxes levied on other tobacco products such as cigars, snuff and chewing tobacco.

Last year, 17 states, the District of Columbia and the federal government raised tobacco taxes. Twenty-seven states now levy more than $1 in taxes per pack of cigarettes. Fourteen states, Washington, D.C., and Puerto Rico levy a tax of $2 per pack or higher. And Connecticut and Rhode...