Montana American Legion votes to oppose Initiative 185 (I-185)

The Montana Department of The American Legion, at its annual Fall Conference of the Executive Committee in Helena, Oct. 27, unanimously voted to oppose Initiative 185 (I-185). The Initiative would raise taxes on cigarettes from $1.70 per pack to $3.70 per pack.

The Montana Department Commander, Richard Klose of Laurel said; "Our members' concerns are multiple. The greatest issue is the negative impact this Initiative would have on future funding of our veteran homes. Additionally, degrading the veteran home funding priority is of great concern."

Klose cited diminished sales of taxed cigarettes each time the tax was previously raised, "Since the tax on cigarettes went from $0.18 to $0.70 in 2003 and to $1.70 in 2004, taxed cigarette sales have declined over 40 percent, decreasing the revenue available to support the veteran homes. The revenue stream for our veteran homes would be severely crippled. While we realize initially the funds available for veteran homes will increase, the funding source could dry up in future years, especially since we would no longer be the first in line for funding."

I-185 will place funding of several new programs ahead of the existing funding of the Veteran Homes located in Columbia Falls, Glendive, and a new facility to be built in Butte. Roger A. Hagan, Legislative Committee Chairman of the Montana American Legion said, "The cigarette tax has been used to fund operation and maintenance of our veteran homes for decades. Since 1993 the law has stipulated that funding of the Veteran Homes is the first distribution of the cigarette tax revenue. This initiative upsets that priority, funding several new programs and leaving the Veteran Home funding 'in the back of the bus'."

Commander Klose wanted the public to know the Legion opposition was not a statement about the Medicaid Health and Economic Livelihood Partnership (HELP Act) Program sunset provisions within the Initiative. It is reported that many veterans benefit from the HELP Act. The Legion also acknowledges the health risks of smoking, but feel increasing taxes on cigarettes is not the solution.

The Montana Department of The American Legion was not consulted prior to the drafting of this Initiative. Klose said; "We would have appreciated the opportunity to provide input to this effort."

The Department will advise all Montana Legionnaires of the Executive Committee decision.