Welcome to the Michigan Action Center!
Help Stop a Massive Federal Tobacco Tax Hike!
President Obama's budget proposal would nearly double the federal excise tax on cigarettes—raising it from $1.01/pack to $1.95/pack! It would also increase federal taxes on other tobacco products by a similar percentage.
If passed, this would be the single-largest increase on federal tobacco taxes in history.
Michigan Tobacco Revenue
- State Excise Tax on Cigarettes: $2.00
- State Excise Tax on Smokeless Tobacco: 32%
- State Excise Tax on Little Cigars: 32% Wholesale Price
- State Excise Tax on Large Cigars: 32% Wholesale Price
- Sales Tax on Cigarette Sales: 6%; $0.38
Michigan Revenue from Cigarettes (In Millions)
- Excise Tax Collected (2011): $916.9
- Master Settlement Agreement (MSA Payments 2011): $251.2
- Cigarette Sales Tax Revenue (2011): $169.6
- Total Revenue Collected (2011): $1,290.8
Source: Bill Orzechowski & Rob Walker, The Tax Burden on Tobacco, vol. 46 (February 2012); funded in part by Altria Client Services Inc.