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State Earns Revenue From Smoking

By Associated Press

Montgomery, AL – Alabama government spends money to encourage people not to smoke, but it relies heavily on cigarette taxes to fund prisons, mental health centers and other important functions of government. That's sending a mixed message. But cigarette taxes are the third biggest tax source for the state General Fund budget. Alabama's property taxes, which are the lowest in the nation, rank fifth.

State Representative John Knight of Montgomery chairs the House Government Finance and Appropriations Committee. He says it's amazing that in Alabama there are campaigns to encourage people not to smoke, but the state depends more on cigarette taxes than property taxes. Alabama expects to take in 162 (M) million dollars this fiscal year. Alabama also expects to collect 94-point-three (M) million dollars this year from tobacco firms as part of the national tobacco settlement. Keeping that money coming in future years depends on keeping the companies profitable.

(Copyright 2006 by The Associated Press. All Rights Reserved.)

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