[Headlines Only] [Top Stories Only]
Categories
· Business (Tobacco)
· Tax
USA, by State
· Kentucky

$mokin' $ales - Cigarettes rebound after big tax increases 

Jump to full article: Danville (KY) Advocate-Messenger, 2009-08-30
Author: HERB BROCK

Intro:

When April 1 hit this year, smokers probably wished what they were seeing in stores was just an April Fools Day prank. But the higher prices for cigarettes were no joke.

April 1 was the day when the state sales tax increased to 30 cents on a pack and to $3 on a carton. On that same day, the federal sales tax went up to 62 cents on a pack and $6.20 on a carton. Combined, the taxes increased to 92 cents per pack and $9.20 per carton.

Managers and owners of local convenience stores and groceries say the response of smokers was predictable -- both before and after April 1. . . .

"Sales have returned to the levels we had before the sales tax increases went into effect, at least in terms of volume, or the numbers of packs and cartons we have been selling."

While she wouldn't compare the actual monetary figures for before and after the tax increases, Baker indicated that those figures might be a little lower now because a lot of customers at the shed are buying cheaper brands.

Jump to full article »