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Sanford Vetoes Cigarette Tax

Kelly Phillips ErbMay 12, 2010

Well, one thing we know about Sanford (alrighty, two, if you count the whole cheating on his wife and lying about it bit) is that he keeps his word… to the legislature.

The governor of South Carolina vetoed a bill yesterday that would have increased the cigarette tax in the state by 50 cents. The state has not seen an increase in cigarette taxes since 1977 and has the distinction of being the state with the lowest cigarette tax in the nation.

The bill now goes back to the House where a vote is expected as early as today. A couple of years ago, a similar bill could not overcome the veto but it is indeed a different day. Sanford’s political capital isn’t what it used to be – and South Carolina, like many other states, is finding itself in a budget crisis. If the legislature can muster the veto, the state is expected to raise $125 million (plus federal matching funds) as a result of the tax.

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Kelly Phillips Erb
Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.
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