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Florida Gov. Charlie Crist Signs $1-per-pack Cigarette Tax Hike Into Law

TALLAHASSEE - Gov. Charlie Crist signed into law a $1-per-pack cigarette tax hike Wednesday the biggest of its kind in Florida history -- saying he hopes to kill the habit that results in thousands of deaths every year.

"I view it more as a health issue than a tax issue," said Crist, a Republican who broke with a career-long opposition to tax increases. " Ronald Reagan used to say if you want to kill something, tax it. It wouldn't be bad if we killed smoking cigarettes. It would save a lot of lives."

Florida's new cigarette tax, which takes effect July 1, is $1.34 per pack.

An equivalent increase also applies to smokeless and pipe tobacco, but not cigars.

The extra $1 tax is expected to generate more than $900 million a year, with the money used to offset Medicaid costs and fund cancer research.

Higher cigarette taxes mean teenagers will never pick up the habit and addicted adults might quit, said Brenda Olsen, an American Lung Association lobbyist.

Even though Florida's cigarette tax has remained flat for two decades, smoking cigarettes rates have steadily declined. About 19 percent of adults, or fewer than 2 million Floridians over 18, smoke.

Every year in Florida, smoking cigarettes is linked to 28,600 deaths and requires $6 billion to treat tobacco-related illnesses, according to state analysts.

"The rate of smoking cigarettes goes down as the cost of smoking cigarettes goes up," Olsen said. "We're not trying to make the product illegal; we saw what happened with prohibition [in the 1920s]. But we certainly work very hard to create a smoke-free Florida and a smoke-free America."

With the increase, Florida goes from having the sixth-lowest cigarette tax in the nation to being slightly above the state average of $1.23 a pack.

Still, Florida's Deep South neighbors have some of the lowest levies in the nation. Among them: Georgia (37 cents), Alabama (42 cents) and South Carolina (7 cents).

New York has the highest cigarette tax, at $2.75 a pack.

For smokers, Florida's tax hike is a double whammy. The federal charge on cigarettes went up 62 cents in April, from 39 cents a pack to $1.01.

David Sutton, a spokesman for the parent company of Philip Morris, said Florida's new tax would prompt many consumers to seek tax-free ways to buy their smokes, whether on an Indian reservation or the Internet.

"Obviously, it's a big hit to our consumers and to retailers as well," he said. "You've got a very difficult economy out there."

The decision to raise cigarette taxes also has political dimensions for Florida's Republican leaders. Crist, who is running for U.S. Senate, had never supported a tax increase in his political career dating back to his time in the state Senate in the 1990s. At a news conference, the governor said the budget doesn't include any "broad-based tax increases," noting most Floridians don't smoke.

Republicans in the Legislature, who have resisted higher taxes since coming to power in 1996, also embraced the tax amid a $6 billion budget deficit.

"I suppose it is fairly unusual to see something like this move with such overwhelming support, as it did this year, and over the objection of some 80 cheap cigarettes lobbyists," said Sen. Ted Deutch, D-Boca Raton, who sponsored the cigarette tax. "This year, I think the combination of the dire budget situation and the acknowledgment that there are significant public health benefits permitted us to move this forward."

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