Tobacco tax supporters turning up heat

Monday, March 8th 2004, 12:00 am

By: News On 6

OKLAHOMA CITY (AP) _ Anti-tobacco forces are seeking to turn up the heat on the Oklahoma House to pass Gov. Brad Henry's plan to raise $130 million to expand health care coverage for 200,000 uninsured Oklahomans.

Rural hospital administrators were scheduled to be at the Capitol Monday to lobby for the measure, which would raise tobacco taxes for Henry's health care initiative and provide funding for a cancer center and the trauma care system.

The plan calls for a statewide vote on raising the state tobacco stamp tax by 77 cents, while eliminating state and local sales taxes.

Since sales taxes total about 25 cents on a $3 pack of cigarettes, the result of the change would be a net 52-cent increase in the average price per pack.

House Speaker Larry Adair, D-Stilwell, sponsor of the plan in the House, conceded supporters are short of the 51 votes needed to pass the bill in the 101-member House.

``We're getting closer,'' Adair said Thursday, adding that he was hoping a ``grass-roots'' appeal from medical providers over the weekend would have an effect on lawmakers.

Various roll-call sheets circulated by groups backing the plan showed the ``yes'' vote far short of the votes needed for passage. One showed 38 votes for the bill, and Adair said that was ``pretty much'' in the range of support at this time.

Paul Sund, spokesman for the governor, said that should be changing as a vote nears either Wednesday or Thursday, the deadline for the House to consider House bills on the floor.

``Momentum is on our side,'' Sund said.

The House is seen as the biggest battleground for the bill since the Senate has passed several strong anti-tobacco measures in recent years.

A year ago, it was not until the end of the session that leaders were able to muster the votes in the House to pass a bill banning smoking in most public places.

Forty-three of the House's 53 Democrats voted for the smoking ban and were joined by nine Republicans as the bill passed, 52-45. An attempt to pass the bill failed the day before.

At least half of the 10 Democrats who voted against the ban last year are smokers and Adair said Henry's tax plan cannot pass the House without bipartisan support.

So far, Republican leaders have been reluctant to get behind the proposal. Rep. Todd Hiett, GOP leader in the House, worries that it will hurt non-tribal convenience stores and other retailers of tobacco products, despite Henry's arguments it will do the opposite.

Republican Lt. Gov. Mary Fallin said last week she supports raising tobacco taxes, hopefully to reduce smoking, but suggested the plan be coupled with eliminating capital gains taxes.

Fallin would use revenue raised from the tobacco tax to increase Medicaid payments to health care providers, but her plan would do nothing to expand health care insurance to uninsured Oklahomans.

Fallin's capital gains plan would cost at least $130 million total over a three-year period.

A capital gains cut is in Henry's budget. Henry proposed to eliminate the tax for Oklahoma assets held for five years. That would cost $4.5 million next year and $33 million the year after that, according to the Office of State Finance.

Both Adair and Henry have said the tobacco tax plan must raise revenue to be successful.

That means it faces built-in opposition in the House, where 25 members have signed pledges with conservative organizations not to vote for a tax increase.

In urging approval, Henry has said he is not asking anyone to vote for a tax increase, just let the voters decide the issue.

He said it is a chance for many term-limited lawmakers to ``do something meaningful to improve the lives of Oklahomans.'