BISMARCK, N.D. (AP) - North Dakota voters have rejected a ballot measure that would have increased the state's cigarette tax by 400 percent.
Opponents of the measure had argued that the tax increase would have punished retailers and unfairly targeted low-income residents. The country's two largest cigarette-makers, Altria Group Inc. and RJ Reynolds Tobacco Co., made large donations to the opposition effort.
Supporters said the additional tax would have increased the state's coffers by about $50 million a year. The money was meant to help pay for health-related programs and establish a trust fund to support health care services and programs for military veterans.
The proposal called for raising the state's 44-cent-per-pack cigarette tax to $2.20. North Dakota has not raised taxes on tobacco products since 1993.