Alabama House Committee Approves Cigarette Tax Increase

An Alabama budget committee has approved a tax increase on cigarette, as lawmakers scramble to make up a budget shortfall.

We've got movement, after months of gridlock with lawmakers debating on how to handle the state's general fund being short $200 million.

The House Way and Means Committee has voted and approved a way to generate $66 million, increase the cigarette tax. The plan would hike the tax by 25 cents, from 42.5 cents to 67.5 cents per pack. The vote won 8-6.

Also, receiving approval from the committee, hikes on on car rental tax from 1.5 to 2 percent, car title fee slides up from $15 to $28. Plus, adjustments in the business privilege tax.

The committee will now bring the proposal to a House for a possible Thursday vote. It's interesting to note, the conversation about a minimum wage hike remains in the discussion as well.