Why It Matters
Nevada’s tobacco tax structure has remained largely unchanged for over a decade while smoking-related diseases cost the state’s healthcare system an estimated $1.25 billion annually. A coalition of health organizations is pushing lawmakers to raise taxes on cigarettes and other tobacco products while redirecting revenue toward prevention programs that remain severely underfunded compared to national benchmarks.
What Happened
The Nevada Tobacco Control & Smoke-free Coalition, which includes the American Cancer Society Cancer Action Network, Southern Nevada Health District, and American Lung Association, presented policy recommendations to the Interim Legislative Committee on Revenue on Wednesday.
The coalition recommends raising Nevada’s cigarette tax by $1.75 per pack—bringing the total to $3.55 per pack—and increasing the tax on other tobacco products from 30% to 47% of wholesale price. These changes would generate an estimated $65.8 million in additional annual revenue.
The coalition also urged lawmakers to reallocate a significantly larger share of existing tobacco revenue toward prevention and cessation programs. Currently, only 0.5% of Nevada’s more than $205 million in annual tobacco revenue supports tobacco control efforts.
Jennifer Atlas of the American Cancer Society Cancer Action Network described the funding gap: “Today we’re generating significant tobacco revenue but investing very little back into helping people quit or preventing youth from starting.”
The Interim Legislative Committee on Revenue will reconvene in August to decide which recommendations to advance as bills during the 2027 Legislative Session.
By the Numbers
$1.75 per pack — proposed increase to Nevada’s cigarette tax
$1.80 per pack — Nevada’s current cigarette tax, unchanged since 2015
$2.05 per pack — national average cigarette tax
47% — proposed new tax rate for other tobacco products (current: 30%)
$65.8 million — estimated annual revenue from proposed tax increases
0.5% — share of Nevada’s tobacco revenue currently allocated to control and prevention
$1.1 million — annual tobacco prevention funding from the state’s tobacco master settlement agreement
$30 million — CDC-recommended annual spending on tobacco prevention for Nevada
4,100 — estimated annual smoking-related deaths in Nevada
$1.25 billion — estimated annual healthcare system costs associated with smoking in Nevada
46th — Nevada’s ranking among states in tobacco prevention funding
Zoom Out
Nevada’s cigarette tax lags the national average by 25 cents per pack, and the state ranks 46th nationally in funding allocated to tobacco prevention. The CDC recommends Nevada spend $30 million annually on such programs, but the state currently directs only $1.1 million through its tobacco settlement agreement.
Tax-based tobacco control has shown measurable results in other states. The coalition estimates that the proposed tax increase would reduce youth smoking by approximately 12% and prevent roughly 4,000 children from becoming adult smokers. Similar tax increases have proven effective in other jurisdictions as a dual strategy: generating revenue while reducing consumption.
What’s Next
The coalition’s recommendations will be evaluated by the Interim Legislative Committee on Revenue when it reconvenes in August. Lawmakers will determine which proposals to sponsor as legislation ahead of the 2027 session, when Nevada’s legislature meets in regular session. The timeline allows time for stakeholder input and committee deliberation before formal bills are drafted.