CONCORD, N.H. (AP) – Smokers will pay about 15 cents a pack more for cigarettes if Gov.-elect John Lynch gets his way next year.
Lynch, who takes office Jan. 6, says the increase would raise $22 million a year to replace money lost from repeal of the statewide property tax, one of his goals.
Lynch, a Democrat, said during the campaign he would seek a tobacco-tax increase if necessary to pay for state aid to schools. He had said previously any increase would be in the neighborhood of 15 cents.
His latest comments were to The Telegraph of Nashua in a story published Monday.
The state tobacco tax now is 52 cents a pack, lowest in the Northeast. A 15-cent increase would still leave New Hampshire with the lowest cigarette tax in New England.
Critics say any increase will undercut cigarette sales, especially in border communities that attract buyers from neighboring states. For the past several years, the tax has brought in more money than expected.
About 40 property-wealthy towns subsidize schools in poor towns through the state property tax. So-called “donor towns” have fought the tax since it was enacted five years ago.
In the interview, Lynch also reiterated his plan to follow Maine’s approach to reducing its prescription drug costs for Medicaid recipients.
“The right approach is for us to negotiate directly with pharmaceutical companies to get them to lower their prices. I want to follow the Maine model,” he said.
Maine has forced drug makers to reduce the cost of drugs they supplied the government Medicaid program in order to do business in that state. The national drug lobby sued, but the Supreme Court upheld Maine’s right to impose the cost controls.
Lynch said he has not decided whether to get rid of a link on the state’s Web site to help people buy cheaper prescription drugs from Canada.
Gov. Craig Benson instituted the link and touted its benefits during his unsuccessful re-election campaign. But Lynch questioned its value.
“The Web site is not really being used by a lot of people,” he said.
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Canadian prescription link:
http://www.nh.gov/governor/prescription/prescription.html
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Information from: The Telegraph, http://www.nashuatelegraph.com
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