Lawmakers to hold hearing on cigarette, car rental tax

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MONTGOMERY, Ala. (AP) – The House Ways and Means General Fund Committee will hold public hearings on proposals to raise the state cigarette tax and the automobile rental tax.

The committee has scheduled the hearings for Tuesday.

One of the bills would raise the cigarette tax by 25 cents per pack. The proposal is considerably less than the 82 cents per pack increase that Gov. Robert Bentley had sought to help fill a hole in the state General Fund. Rep. Patricia Todd introduced the latest version of the cigarette tax bill last week.

Lawmakers will also hold a hearing on a bill to raise the rental tax on automobiles from 1.5 percent to 4 percent.

House Ways and Means General Fund Chairman Steve Clouse says the committee will likely debate the budget next week.