Budget committee approves cigarette, business tax increase

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MONTGOMERY, Ala. (AP) – The House General Fund committee has approved a 25-cent per pack increase in cigarette taxes, and other revenue measures as part of a House GOP plan to address a state budget shortfall.

Committee members approved the bills Wednesday, a day after House Republicans announced support for a combination of $150 million in revenue measures and cost-cutting measures.

Raising the cigarette tax would generate an additional $60 million. Committee members also voted to: raise the automobile rental tax from 1.5 to 2 percent; raise the title fee on automobiles from $15 to $25; and increase the business privilege tax for large businesses.

Ways and Means General Fund Committee Chairman Steve Clouse said the House proposal is fairer than a $541 million tax increase being sought by Gov. Robert Bentley.

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