Montana lawmakers are considering a significant change to the state's tobacco tax with the introduction of House Bill 826, proposed by Representative Melody Cunningham. This bill seeks to raise the tax on combustible cigarettes by one dollar per pack, marking the first increase in 21 years. The proposed change aims to address the substantial health care costs associated with smoking, which amount to over $511 million annually in Montana.

During the House Taxation Committee meeting on March 26, 2025, Cunningham emphasized the financial burden smoking places on the state, noting that each Montana household effectively pays about $9 annually to cover healthcare expenditures related to tobacco use. The bill's supporters argue that increasing the tax could deter youth smoking and reduce overall tobacco use, particularly among vulnerable populations.

Several young advocates, including high school students, voiced their support for the bill, highlighting its potential to create a healthier future for Montana. They pointed out that higher taxes on cigarettes have been shown to decrease smoking rates, especially among teenagers, who are particularly sensitive to price changes. The proposed tax increase is expected to generate additional revenue that could be allocated to health programs and smoking cessation initiatives.

Health organizations, including the American Heart Association and the American Academy of Pediatrics, also expressed strong support for the bill. They underscored the importance of tobacco taxes in reducing smoking prevalence and the associated health risks, particularly among young adults aged 18 to 24, who are most likely to start smoking.

The committee's discussions reflect a growing recognition of the need to update Montana's tobacco tax to align with inflation and public health goals. As the state considers this proposal, the potential benefits for community health and economic savings from reduced smoking-related illnesses remain at the forefront of the conversation. The committee will continue to evaluate the bill, with advocates urging swift action to improve the health outcomes for all Montanans.