States Raising Cigarette, Gas and Sales Taxes to Cover Shortfalls
By MATTHEW SCOTT
Consumers don’t have to wait for the Bush tax cuts to be repealed in order to pay higher taxes. Individual states are hiking tax rates on the sale of retail items, gasoline and cigarettes. Over the last year, 11 states have hiked taxes on cigarettes, five have increased their gasoline tax and five have increased their state sales taxes, according to a recent survey of state consumption taxes.
“From the increases in consumer taxes, it’s evident that many states are trying to shore up revenue shortfalls,” said Daniel Schibley, senior state tax analyst for CCH, a subsidiary of tax and accounting services firm Wolters Kluwer (WTKWY) which conducted the survey. “Many other states have not yet increased taxes, but may.”