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Texas smokers hit with new excise tax
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2007/01/01
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Texas smokers will pay considerably more for cigarettes beginning today as a new excise tax takes effect.
The state Legislature approved the measure in May in an effort to pressure smokers to quit and to allow a break on property taxes. The tax will increase $1 from a moderate 41 cents to $1.41 a pack, placing Texas among the 15 states with the highest cigarette levies. New Jersey has the highest tax, at $2.58 a pack. The increase will push the price of a single pack of cigarettes in Texas to about $4.50. The state comptroller's office has estimated the tax increase will generate $700 million a year, enabling a reduction in property taxes.
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