Michigan Information
Michigan Citizens: Please print out the petition and mail it in.
Michigan Business Alliance: No tobacco tax increase!
Midland Real Estate: Michigan Based Real Estate.
Tobacco Taxes
Michigan's excise tax per pack of cigarettes: $2.000
Michigan's excise tax collection for the
fiscal year ending June 2002: $584,605,000
Sales tax on tobacco products: 6.00%
Federal excise tax per pack of cigarettes: $0.39
Total federal excise tax collections in fiscal year 2002: $7,512,700,000
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Who Profits from
Cigarette Sales? 
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Comparing Excise Taxes on Cigarettes, Beer and Wine
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Number of six-packs of beer that must be sold in Michigan to produce the same state excise tax revenue generated by one carton of cigarettes: 66.7 |
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Number of bottles of wine that must be sold in Michigan to produce the same state excise tax revenue generated by one carton of cigarettes: 74.2 |
Michigan Smokers' Contributions
to the State Economy - FY2003
In 2002, Michigan smokers comprise only 24.2%1 of the adult population in the state. Here is what they already pay because they choose to buy a legal product:
Smokers Pay Excise Taxes2 |
$ |
828,678,000 |
Smokers Pay Sales Taxes2 |
$ |
151,785,000 |
Smokers Pay Tobacco Settlement Payments3 |
$ |
317,444,000 |
|
$ |
1,297,907,000 |
Smokers' Economic/Tax Profile 2002
Michigan smokers' median household income |
$ |
35,885 |
Michigan nonsmokers' median household income |
$ |
46,787 |
- Working families pay more1
33% of Michigan smokers had household income LESS THAN $25,000
15% of Michigan smokers had household income EQUAL TO or GREATER THAN $75,000
The impact of smoker payments on the incomes of working families was more than THREE TIMES the impact on higher income smokers. Those who can afford it least pay a disproportionate percentage of their hard-earned income in smoker payments.
- Smoker excise tax/sales tax/tobacco settlement payments liability in 20024
Total average paid per Michigan smoker in excise and sales taxes |
$ |
552 |
Cost per Michigan smoker for settlement payments to Michigan |
$ |
178 |
Total annual payments to Michigan per smoker |
$ |
730 |
Total annual payments to Michigan per nonsmoker |
$ |
0 |
Michigan Smoker Facts 5
- Michigan FY2003 smoker payments of $1.3 billion were:
- More than eleven times larger than state excise taxes on alcoholic beverages in FY2003 ($109.6 million).
- Larger than FY2003 Gasoline and Liquefied Petroleum Gas Taxes ($936.2 million).
- Larger than FY2003 "use" tax collections ($1.2 billion).
- The total amount paid to Michigan in FY2003 by smokers could fund gross appropriations for:
- Career Development ($457.8 million) AND Consumer and Industry Services ($586.2 million)
-OR-
- Environment Quality ($404 million) AND Community Colleges ($310.9 million) AND Information Technology ($465.5 million)
-OR-
- State Police ($476.3 million) AND General Fund appropriations for School Aid ($380.1 million).
- In 1997, smokers provided 10,767 jobs that paid an additional $19.6 million to the state in personal and corporate income taxes.6
TOTAL SMOKER CIGARETTE PAYMENTS TO MICHIGAN FY2003 |
|
Per year: |
$ |
1,297,907,000 |
Per day: |
$ |
3,553,476 |
Per hour: |
$ |
148,061 |
Per minute: |
$ |
2,468 |
Per second: |
$ |
41 |
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CIGARETTES DON'T PAY TAXES -
MICHIGAN SMOKERS DO!!
1 Centers for Disease Control's Behavioral Risk Factor Surveillance System, 2002
2 Orzechowski & Walker, Arlington, Virginia; from state revenue department.
3 PriceWaterhouseCooper
4 U.S. Census Bureau, 2000 state population and Centers for Disease Control's Behavioral Risk Surveillance System, 2002
5 Tax and Budget comparisons are from the Michigan State Budget Office, Fiscal Year 2005 Executive Budget: Tables and Charts online at http://www.michigan.gov/budget/0,1607,7-157-11460_11538---,00.html.
6 American Economics Group, Inc., The U.S. Tobacco Industry in 1997: Its Economic Impact in the States.
Master Settlement Agreement Payments To Date
$1,014,843,380 has been paid to Michigan since the Master Settlement Agreement was signed on November 23, 1998.
No Laws Found
The reprinting of this information from the Coalition, does not constitute a representation or admission by RJRT that such information is accurate, complete, or a proper characterization of the laws concerned. The Coalition for Responsible Tobacco Retailing is a cooperative effort among retailers, wholesalers and manufacturers who share a common goal: to do all they can to prevent tobacco sales to minors.
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