Colorado Springs (AP) Tobacco tax revenues may end up falling short of estimates, despite jumping nearly 200% since the beginning of the year. Proponents of the tax hike approved last fall said it would bring in an extra $172 million dollars this year, but so far state revenue department figures suggest the state will end up $42 million dollars short of that estimate.
The governor's spokesman Dan Hopkins calls the projection, "overly optimistic," and says states that have increased tobacco taxes have seen a decrease in revenues.
He says that's the reason why the governor wanted to create a reserve fund for some of the tax money, which is also being used to fund health care programs.
A constitutional amendment approved by voters in November raised the tax on a pack of cigarettes from 20 cents to 84 cents and the tax on other tobacco products by 20%.
Copyright 2005 by the Associated Press. All Rights Reserved.
© KKCO NBC 11 News - All Rights Reserved
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or firstname.lastname@example.org.