Iowa Imposes First Cigarette Tax: Iowa Time Machine April 11, 1921

Iowa Time Machine ⏰: On April 11, 1921, Iowa led the way when it levied the first cigarette tax in the United States. Governor Nathan Kendall signed into law the two-cent per package tax, representing the first significant ‘sin tax’ levied by the state of Iowa.

Support driven by the Women’s Christian Temperance Union helped codify the law, which was defeated in the Iowa Senate only days before its eventual passage. Governor Kendall commented: “In the disordered state of fiscal affairs at this juncture, with the burdens of government increased and the ability to bear them reduced so material a contribution to the treasury would be especially welcome.”

Some Iowans believed the measure didn’t go far enough, instead hoping the state would enforce a complete ban on tobacco. The tax represented a compromise of sorts by creating stiff penalties for selling to minors, among other provisions.

The ‘sin tax’ began raking in cash on July 4, 1921, and generated impressive revenue for the state. The Dallas County Reporter noted on July 10, 1923: “A total of $1,233,013.63 has been collected since the law went into effect.” The two-cent tax lasted until 1953, when the legislature agreed to move to three cents. Steady increases continued over time, and in 2007, it went to $1.36 per pack. #Iowa #OTD #History #Smoking #Taxes