Smoky Tax Increase

Cigarette Tax
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The state's cigarette tax increase takes effect Thursday.

Supporters hope it leads to a healthier population and healthier state finances.

The tax on a pack of cigarettes has risen 50 cents, from 75-cents to a $1.25. And the tax on other tobacco products has been raised from 16-percent of the wholesale rate to 20-percent.

The Senate Fiscal Agency estimates the cigarette tax increase will generate an extra $33 million for the state through Sept. 30.

Revenue from the tax increase will be divided among the state general fund, its school aid fund and other special funds. Twenty cents out of the 50-cent increase will go to the school aid fund.

The non-profit group Tobacco Free Michigan estimates that the tax boost will induce nearly 45,000 Michigan smokers to quit.