CLEVELAND — They help pay for stadiums, the arena, and even arts and culture programs, but county records show the amount of money collected by Cuyahoga County’s cigarette taxes has plummeted by millions of dollars in recent years.
The discovery comes as Gov. Mike DeWine proposes raising the state tax on tobacco even higher.
According to Cuyahoga County tax collection numbers, cigarette tax revenue dropped by more than 34% between 2016 and 2023.
The cigarette portion of the sin tax, which pays for upkeep at Huntington Bank Field, Rocket Arena and Progressive Field, dropped from $2.3 million collected in 2016 to $1.5 million in 2023.
Cuyahoga Arts and Culture, which is funded entirely by cigarette tax money, was hit even harder.
“I always say who wants to run a business when you have 50% less cash coming in,” said Jill Paulsen, executive director of the organization, which helps fund about 300 nonprofit arts and culture groups countywide each year. “It’s definitely not an enviable situation compared to those who have money in the stock market and can see increases or have an increasing tax source, right?”
In 2016, arts and culture funding was nearly $15.2 million, according to county records. In 2024, the organization said that number dropped to just under $9 million.
“It makes it tricky when the pie is smaller and there’s more people coming to the table, for sure,” said Paulsen.
In November, county voters approved extending and increasing the cigarette tax for arts and culture programs. Beginning this month, the tax will be 40 cents per pack.
But Paulsen admits it’s likely a temporary funding fix.
“Honestly, to your point, it’s a declining revenue source,” said Paulsen. “Even though now we have an expanded tax, it will eventually, and probably quite soon, continue to go down.”
She’s probably right, according to Jin Kim-Mozelesk, an assistant professor at Case Western Reserve University’s School of Medicine.
Her research centers on tobacco and tobacco-related health disparities.
“Increasing the price of cigarettes through cigarette taxes is a very effective method to reduce the number of people who smoke overall,” said Kim-Mozeleski.
She said the county’s drop in cigarette tax revenue follows a drop in smoking nationwide.
Longtime smoker Reba Clardy kicked the habit last fall, going from a pack a day to cigarette-free.
“Listen, I done paid for a whole bunch of stuff in the city of Cleveland with my money,” said Clardy. “I could be rich. I mean all those years, working all the time, I could be a millionaire!”
Kim-Mozeleski said peer norms surrounding smoking have changed.
“Young people are not taking up smoking in the way that it was perceived as cool back in the day,” said Kim-Mozeleski.
She said if people don’t start smoking by age 25, they’re not likely to pick up the habit later.
While it’s good for public health, the trend presents challenges if your budget relies on it.
“I think that’s all the reason that the community has to come together and say, CAC is one solution, we need some others as well,” said Paulsen.
Cuyahoga County Council recently approved funding a study looking for alternate ways of funding arts and culture programs.
The cigarette tax approved by voters does not include products like vapes or nicotine pouches.
The sin tax, which helps fund the upkeep of the stadium, ballpark and arena, also includes alcohol sales.
Because of increases in the amount collected on liquor, beer, and wine, there has only been a slight drop in the total amount of sin taxes collected, which has helped weather the 34% reduction in cigarette tax collection.
