Cuyahoga County voters will decide on raising the cigarette tax to support local arts. Here's what you need to know before heading to the polls.
This November, the Cuyahoga Arts + Culture Tax Levy will appear on the ballot for all residents of Cuyahoga County. It proposes a 3.5-cent-per-cigarette tax which will go to supporting arts and cultural groups in Cuyahoga County in the form of grants by Cuyahoga Arts & Culture (CAC). This tax is an increase from the current 1.5-cent-per-cigarette tax implemented in 2006 and renewed in 2015.
How Do Cigarette Taxes Work
Cigarette taxes are not new to Ohio, with the Ohio legislature enacting the state’s first cigarette tax in 1931. However, the process of cigarette taxes is not that straightforward.
In Ohio, cigarette taxes are paid by wholesale dealers (those who purchase cigarettes from a manufacturer to be resold) through the purchase of a stamp which is, then, affixed to the cigarette pack. This means consumers do not directly pay the tax, but the retail price of cigarettes often rises to account for the money the wholesaler must pay for the stamp. A 3.5-cent-per-cigarette tax is expected to increase the price of individual cigarette packs by 30-40 cents.
What is Cuyahoga Arts & Culture?
The organization at the forefront of this tax is Cuyahoga Arts & Culture (CAC), an independent political subdivision of the county whose sole funding source is the Cuyahoga Arts & Culture Tax on cigarettes. It originated in 2006 to distribute revenue raised by the 1.5-cent-per-cigarette tax to arts and cultural organizations in Cuyahoga County. Since its inception in 2006, CAC has granted $246 million to arts and cultural organizations across the county—some of the notable current recipients are the Cleveland International Film Festival, Playhouse Square, various Cultural Gardens.
In 2015, 75% of Cuyahoga County residents voted to renew the 1.5-cent-per-cigarette tax until 2027, and leaders on the tax said they would search for an alternative funding mechanism before 2027. Over the past nine years, alternative tax revenue sources were explored—including dine-in meals, grocery bags, and bottled water taxes—but CAC Executive Director Jill Paulsen says that these other options were either already taxed or prohibited by state law. Jeff Rusnak, a political consultant from R Strategy Group and a proponent of the current 3.5-cent-per-cigarette tax campaign, notes that other funding sources were simply unpopular with voters or they wouldn’t generate the necessary revenue.
CAC also considered a tax on vapor products. However, the July 2023 state budget knocked that idea down by constraining the tax to simply cigarettes because a mechanism for collecting a vapor product tax does not yet exist. This came as a reversal of Senate Bill 164, passed in January 2023, which gave Cuyahoga County the right to include a tax of vape products on the ballot.
Now the Cuyahoga Arts + Culture Tax is back on the ballot at 3.5-cents-per-cigarette. This increase comes three years ahead of the scheduled 2027 tax renewal as CAC’s revenue has plummeted from $19.5 million in 2008 to a mere $11.7 million in 2022. CAC says this new 3.5-cent-per-cigarette tax will raise $160 million over the next 10 years, which they hope will replenish the dip in grant funding currently experienced by CAC.
Voting Yes
Voting YES means you support increasing the Cuyahoga Arts + Culture Tax to 3.5-cents-per-cigarette to fund CAC.
The Effects of a "YES" Vote:
CAC will have the revenue to continue, perhaps even increase, funding Cuyahoga County arts and cultural organizations through their grant. CAC projects the tax will raise $160 million over the next 10 years
Reduce smoking which kills 8 million people each year in a city where 35% of adults smoke, one of the highest rates of adult smokers in the U.S.
Cigarette taxes are the most effective and cost-effective way to reduce cigarette/tobacco use at-large
Reductions are particularly present in people ages 18-24 as a 25-cent increase in cigarette prices reduced smoking by 1.5% for that age group
Cigarette packs will rise 30-40 cents in cost
Place an additional financial burden on those most economically disadvantaged.
While higher taxes reduce tobacco use overall, Scioto Analysis found that those with an annual income below $25,000 were the least likely to stop smoking as a result of cigarette tax increases and are, thus, the most financially impacted by a cigarette tax.
Voting No
Voting NO means you are against increasing the Cuyahoga Arts + Culture Tax to 3.5-cents-per-cigarette to fund CAC.
The Effects of a "NO " Vote:
Cigarette prices will not rise 30-40 cents per pack
Prevent an additional financial burden on those most economically disadvantaged
Those most economically disadvantaged are the most financially impacted by cigarette taxes as they are the least likely to stop smoking
CAC’s revenue has decreased about 50% from 2008 levels. If the CAC’s revenue isn’t increased with a higher cigarette tax, the organization may have to decrease the number of grants given and/or decrease the amount of grant money provided to recipients
The only dedicated county tax fund for the arts in Ohio would be reduced
Smoking rates will continue following current trends, with 35% of adults in Cleveland currently smoking
As you become acquainted with the issues on the ballot this November, remember to understand the context of each issue, both of your options, and the effects of each option.
For more information, please consult the following resources:
To learn more about the Arts + Culture Tax Levy
To learn more about cigarette taxes in Ohio
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