June 10, 2023

Less Smoking Hits Tobacco Settlement Revenues

Florida likely will see lower-than-expected revenues from a landmark settlement with the tobacco industry because fewer people are smoking or smokers are cutting back.

State economists on Friday released a report that lowered projected payments over the next decade from the 1997 settlement.

“Overall, expected payments have been lowered largely because of the changes in the long-term view of cigarette usage,” the report said.

The report pointed to a forecast last month that cigarette sales would decline by 2.5 percent annually over the next decade.

The decline had earlier been projected between 1.44 percent and 1.75 percent.

The report also said tobacco-manufacturer payments were $1.7 million less than anticipated for the recently completed 2021-2022 fiscal year.

Economists had projected $413.8 million in payments, but the year-end total is now estimated at $412.1 million.

The economists, meeting as the state Revenue Estimating Conference, also revised anticipated payments for the coming years.

After earlier projecting $426.2 million in revenue during the current fiscal year, which began July 1, the state is now forecast to receive $403.9 million through the settlement.

Similarly, the projection went from $442.5 million to $417.9 million for the 2023-2024 fiscal year.

Tags: News Service of Florida

Florida Business News

Florida News Releases

Florida Trend Video Pick

United Launch Alliance tests new Vulcan rocket
United Launch Alliance tests new Vulcan rocket

United Launch Alliance tested its new Vulcan rocket at Cape Canaveral Space Force Station in Florida. The next-generation, methane-fueled rocket will replace the company's Atlas and Delta rockets, which are being retired.

Video Picks | Viewpoints@FloridaTrend

Ballot Box

Did you have to add flood insurance to your Florida homeowner's policy this year?

  • Yes
  • No
  • Undecided
  • Other (Write your answer below)

See Results

Florida Trend Media Company
490 1st Ave S
St Petersburg, FL 33701
727.821.5800

© Copyright 2023 Trend Magazines Inc. All rights reserved.