Opponents of a tobacco tax initiative on the Missouri ballot say local governments could lose a lot of money if the measure passes.

The proposal would raise the state cigarette tax from 17 cents to 90 cents per pack and also increase taxes on other tobacco products.

 

An estimate from the state auditor’s office says it would generate between $283 million and $423 million annually for the state. It says the effect on local governments is unknown.

But an association of convenience stores hired an economist at the University of Missouri-Columbia to analyze the issue. That study assumes a higher state tax will decrease sales of tobacco products, thus decreasing sales tax revenues for cities and counties.

The Missouri Petroleum Marketers and Convenience Store Association launched a campaign Tuesday against the initiative.

Supporters of Proposition B cite Missouri as having the 11th-highest smoking rate in the country coupled with the lowest cigarette tax rate.

The Jefferson City-based group Show Me A Brighter Future says the state loses about $532 million each year in Medicaid costs because of smoking.

Supporters are confident the measure will pass voter scrutiny even though previous failed by narrow margins in 2002 and 2006.

Take the poll!

[polldaddy poll=6579816]