The Missouri State Supreme Court heard arguments on Thursday on a proposed statewide tobacco tax hike.
Amendment 3 would modify the state constitution to allow an increase on cigarette taxes every year through 2020 and create an annually increasing fee of 67 cents per pack paid by wholesalers. The funds created would then be deposited into a new Early Childhood Health and Education Trust Fund. An estimated $263-374 million would be generated from this amendment.
The tax hike is supported by Raise Your Hand for Kids, an organization created for the purpose of adding this amendment to the state constitution, according to co-founder Linda Rallo. Rallo, along with other citizens, were motivated to form this group to increase Missouri’s funding for early childhood education. In 2015, Missouri lawmakers allocated 36 percent of the state budget to elementary and secondary education.
Supporters gathered over 200,000 signatures on a petition to put the measure on November ballots. But opponents of the amendment argue that the signatures are invalid because of an appeals court decision to change the petition’s language after it was submitted. Attorney Jane Dueker, who supports the amendment, does not agree with this claim.
“We believe that the Missouri Supreme Court is going to uphold the will of the people and allow the people to vote on this important amendment.”
A vocal opponent of Amendment 3 is Ronald J. Leone, the Executive Director of the Missouri Petroleum Marketers and Convenience Store Association. He says that on the surface the bill’s intent is to help Missouri’s kids, but it’s really just a way for big tobacco companies to make more money.
“It increases big tobacco cigarette profits and market shares by massively and unfairly taxing their competition.”
There is no current provision in the amendment that caps an increase in the tax. If allowed by the state supreme court, the measure will go on the ballot this November.