Pennsylvania Raises Cigarette Tax By A Dollar

Pennsylvania's cigarette tax will be raised by one dollar, from $1.60 to $2.60, due to changes in the 2016-2017 budget that has been passed.

This makes Pennsylvania's cigarette tax the 10th highest in the nation, according to the Campaign for Tobacco Free Kids.

State records show that more than $30 million of annual income from the cigarette tax funds the Children’s Health Insurance Program (CHIP), which provides health insurance to uninsured children and teens.

In addition, another $20.49 million from the cigarette tax annually supports the Agricultural Conservation Easement Purchase Fund, which preserves farmland across the state.

In the city of Philadelphia, there is already a $2 per pack tax, meaning that the new changes will bump up the city's cigarette tax to $4.60. The Philly cigarette tax helps to fund public schools.

The changes to the budget and the cigarette tax will go into effect on August 1.