Tax reduces smoking, OSU study finds

An Oklahoma State University study found that a voter-approved increase in Oklahoma's cigarette tax reduced the number of cigarettes sold and motivated many Oklahoma smokers to cut back or quit.

The study was funded by the state Health Department.

“The results of this study are important because smoking kills, and the research finds that increasing the tobacco tax saves lives by reducing smoking,” said Josh Wiener, professor and head of the OSU marketing department and co-principal investigator for the study.

The tax increase took effect Jan. 1, 2005, and increased the cigarette tax from 23 cents to $1.03 per pack.

The study found that cigarette sales dropped by 47 million packs after the tax increase, from 356 million packs sold in fiscal year 2004 to 309 million packs sold in fiscal year 2006.

About 35 percent of smokers said the price increase encouraged them to quit.

Although the tax increase influenced smokers within all demographic groups, those most affected were individuals with an annual income below $50,000.