[Headlines Only] [Top Stories Only]
Categories
· Tax
USA, by State
· Rhode Island

Storeowners fume over hike in cigarette tax  

Jump to full article: Providence (RI) Journal-Bulletin, 2009-01-24
Author: Cynthia Needham Journal State House Bureau

Intro:

State budget officials say the combined effect of raising taxes by $1-a-pack and eliminating minimum pricing laws would generate upward of $17 million in new revenue by June 30, helping to close the deficit.

Convenience storeowners fear it will have the opposite effect. Fewer people will be able to afford cigarettes, they say. Those who can will look to the Internet and low-cost states such as New Hampshire for cheaper deals.

The result: Rhode Island's sales will plummet and they'll lose much-needed business.

Currently, a pack of name-brand cigarettes costs more than $7 in Rhode Island. That's compared with about $8.25 in Massachusetts where lawmakers last year raised the per-pack tax by $1.

Jump to full article »