Nevada Coalition Pushes First Cigarette Tax Hike Since 2015

A coalition of Nevada health groups wants lawmakers to raise cigarette taxes for the first time in over a decade. The Nevada Tobacco Control & Smoke-Free Coalition presented the plan on July 8. It went before the Legislature's Joint Interim Standing Committee on Revenue. The proposal would raise the per-pack cigarette tax from $1.80 to $3.55. It would also raise taxes on other tobacco products, including vapes, from 30% to 47% of wholesale price. Advocates say the changes could generate more than $65 million a year for the state.

Advocates Say Nevada Underfunds Tobacco Cessation

Coalition members include the American Cancer Society Cancer Action Network, the American Lung Association, and the Southern Nevada Health District. ACS CAN government relations director Jennifer Atlas presented the plan to committee members. "Today, we're generating significant tobacco revenue but investing very little into helping people quit or preventing youth from starting," Atlas said.

The group wants a share of any new revenue directed toward cessation and prevention programs. It says Nevada currently spends only a small fraction of tobacco revenue on those efforts. Nevada's cigarette tax has not changed since 2015. The state's current rate ranks 26th nationally, below the $2.05 average.

Lawmakers Weigh Revenue Impact of Proposed Tax Hike

Committee Chair Dina Neal questioned whether falling smoking rates would offset new revenue over time. Atlas said the pattern is predictable, pointing to outcomes in other states. "Every state that has enacted a similar policy and raised their taxes have seen significant revenue increase," she said.

Legislative fiscal staff backed her claim with supporting data. Past tax hikes, in 2003 and 2015, produced revenue spikes followed by gradual declines. Any increase would need two-thirds support in both the Senate and Assembly. Lawmakers gave no indication of where they stand. The committee was expected to decide by late August which bill drafts to advance.

Smoking Rates Decline as Critics Warn of Black Market

If approved, the proposal would head to the 2027 legislative session, which opens February 1.

Nevada's adult smoking rate has fallen from 17.6% in 2015 to 11.9% in 2024.

Federal survey data cited by advocates support those figures. The coalition argues a higher tax would accelerate that decline further.

Opponents, including tax-policy critics, warn that steep increases can push sales across state lines or into illicit markets. Nevada casinos, where indoor smoking remains legal on gaming floors, were not addressed directly in the proposal. The debate adds to a years-long push by advocacy groups to change Nevada's tobacco and casino-smoking policies.