Legislators have long debated such a tax, but bills put forth in the past have been bogged down during debate over the amount of the tax, and how the revenues should be spent.
Many legislators advocate the monies be used to shore up the state’s health care system, but others balk at funding such vital programs with what they say is sure to be a declining source of revenue.
Pickens Sen. Larry Martin says he feels budget issues will force the state to address the issue, but that any cigarette tax could face a veto from Gov. Mark Sanford.
“I think it’s going to be another tough year,” Martin said.
In May 2008, Sanford vetoed a bill that called for a 50-cent cigarette tax increase.
“I don’t think Governor Sanford’s position on it has changed too much,” Martin said, adding that legislators may have to override the governor’s veto, but that it’s hard to get House members to override vetoes during an election year.
“We really need the funds for the Medicaid program,” he said, adding that healthcare reform could place “huge burdens” on the state’s Medicaid program.
“We’re going to be just overwhelmed,” Martin continued. “There’s no question that the need is there.”
Martin said he supports a 50-cent increase.
“That’s where we are in the Senate right now,” he said.
Martin estimates such an increase would generate more than a $100 million for the state.
Some legislators may object to adding a tax without cutting or eliminating another tax, but Martin said the state is up against a wall.
“Our revenues are down hundreds of millions of dollars,” he said. “We’re not talking about raising the general tax rates.”
He said South Carolina’s cigarette tax is out of line with neighboring states.
“I think the 50-cent range is reasonable,” Martin said.




