Sanford vetoes S.C. cigarette tax hike

COLUMBIA, S.C., May 12 (UPI) -- South Carolina's stature as the state with the lowest cigarette tax may be snuffed out if lawmakers can override a veto of a proposed 50-cent per pack tax hike.

Republican Gov. Mark Sanford Tuesday vetoed the General Assembly's proposal to raise the current cigarette tax of 7 cents per pack to 57 cents on ideological grounds, The (Columbia, S.C.) State reported Wednesday.

Supporters of the tax hike said the state, facing massive budget deficits, needs the estimated $135 million in added revenue that a higher cigarette tax would produce. South Carolina is projected to face an additional $1.2 billion revenue shortfall in the next fiscal year, likely resulting in more layoffs, furloughs and cuts in state services.

Sanford consistently said he would not support a cigarette tax increase without a corresponding tax reduction, preferably in the state's income tax, The State said. The Republican governor said tax cuts will spur the state's economy and create jobs.

"For the last seven years, we've advocated an increase to the cigarette tax, while at the same time insisting that we ought not to raise the overall tax burden on working South Carolinians," Sanford said.

Vote-counters indicate the House may not be able to rally enough members for the two-thirds vote needed to override Sanford's veto. Observers said a two-thirds vote margin was believed to be obtainable in the 46-member Senate.