|Health Factors:||Tobacco Use|
|Decision Makers:||Local Government State Government Federal Government|
|Population Reach:||20-49% of WI's population|
|Impact on Disparities:|
Is this program or policy in use in your community? Tell us about it.
Tobacco per unit prices are usually increased through taxes, but can also be increased by point-of-sale fees. Prices may be increased at the state, federal, or local level; some local governments cannot enact such measures due to state preemption legislation (CG-Tobacco use).
There is strong evidence that increasing the unit price of tobacco decreases tobacco use and consumption and improves quit rates among adults and young people (CG-Tobacco use, Wilson 2012). Increasing the price of tobacco also reduces tobacco initiation among young people (CG-Tobacco use).
Effects are proportional to the amount of the price increase. Research indicates that a 20% increase in unit price could reduce tobacco consumption by 10%, adult tobacco use rates by 4%, and youth initiation by 9% (CG-Tobacco use).
Researchers suggest expanding cessation services in conjunction with price increases and incorporating funding for tobacco prevention and control to build acceptance of these policies. Researchers also warn that policies that treat different tobacco products differently may encourage users to substitute one tobacco product for another. Successful efforts to increase tobacco prices usually involve coalitions seeking both public health improvements and revenue (CG-Tobacco use).
Increasing tobacco prices may reduce disparities in tobacco use (CG-Tobacco use). Hispanics, blacks (CG-Tobacco use), children, adolescents, and individuals with low incomes appear to be most sensitive to price changes in tobacco products (Wilson 2012).
Tobacco price increases can generate substantial health care cost savings and avert the cost of lost work productivity due to tobacco related illnesses (CG-Tobacco use).
All states tax cigarettes. As of 2013, 7 states tax them at 50 cents or less per pack, and 16 require $2 or more. Most states also tax smokeless tobacco (CDC-STATE).
Most price increases occur at the state level, but recently communities have also begun raising prices through regulatory, health impact, or abatement fees. Revenue-sharing agreements with tribes can encourage tribal adoption of price increases. Some local governments cannot enact such measures due to state preemption legislation (CG-Tobacco use).
Wisconsin taxes cigarettes at $2.52 per pack (the ninth highest in the nation), and smokeless tobacco at 71% of the manufacturer’s list price (CDC-STATE).