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Cigarette Tax Hurts Independent Dealers

05:17, 2008-Jun-4 .. Posted in fashionable cigarettes .. Link

The average price of a pack of cigarettes is pushing $7.00, and independent smoke shop owners are seeing less customers because of it. Smokers buying cigarettes will have to pay up to $2.00 more per pack. At Tobacconist in Armory Square, a pack that cost $5.00 yesterday, will cost you over $6.50 today. The owner says that's going to hurt business.
A few blocks away, smokers were hesitant to buy cigarettes at the Downtown Smoke Shop in Syracuse today. The higher price left business slower than normal.
Smoke shop owners are afraid of losing customers to Indian Reservations, where there are no taxes on cigarettes. We spoke to the Onondaga Nation Smoke Shop. They say they've received more phone calls from customers wanting to know their price for cigarettes. The store sells pack $2.00 to $3.00 cheaper than in the city. For small smoke shops, that's hard to compete with.
State officials say the increase should give the state $265 million dollars a year in additional revenue, on top of the more than one billion it already brings in.



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