Omaha proposes higher cigarette tax

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Story Created: Sep 11, 2012 at 4:30 PM CDT

Story Updated: Sep 12, 2012 at 4:07 PM CDT

Smokers in Omaha could be paying more for a pack of cigarettes. City Council is voting on the issue later this month.

The plan is to raise the cigarette tax to contribute $35 million in the next decade for the UNMC cancer complex. Ground is expected to be broken on the $370 million project in 2013.

Some tobacco store owners have said the new tax could put them out of business because smokers will just drive out of the city to buy cigarettes.

UNMC is arranging $200 million for the public/private partnership. The state of Nebraska will contribute $50 million.

The public hearing on the cigarette tax before the Omaha City Council will be September 25.

Douglas County Commissioners agreed Tuesday morning to support the future project by chipping in $5 million from Inheritance Tax collections.

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