posted on January 2, 2007 08:13:21 AM
Texas' new cigarette tax hike goes into effect
(01/01/07 - AUSTIN, TX) - Texas smokers are starting 2007 with a decision to make: pay more for cigarettes, get them elsewhere or perhaps finally quit altogether.
Starting Monday, a pack of smokes will cost $1 more as the state rolls out its new cigarette tax hike, signed into law in May to help offset cuts in local school property taxes. The increase -- which will be added to the existing 41-cent per pack tax -- is first in Texas since 1991.
Texas was formerly among the states with the lowest cigarette tax. But the $1.41 tax customers will now pay ranks Texas among the top third. New Jersey levies a nation-high $2.58 state tax per pack.
The higher tax is one of few laws taking effect at the start of 2007, since the Legislature was in session to tackle school finance. The state's new business tax also kicks in Monday, although the first payments to the state won't be due until May 2008 and lawmakers could change it in the upcoming legislative session.
Like the cigarette tax, the new business tax is to replace money lost by cuts in local school property taxes.
But for now, it's the cigarette tax that has everyone's attention, especially smokers. A pack of best-selling brands like Marlboro will now cost smokers around $4.50, while carton prices will rise between $10 and $12.
"It's going to really hurt," said Tobacco Patch owner Philip Rhodes, whose store in Marshall is just a 20-mile drive from Louisiana, where the cigarette tax is 36 cents per pack. "I just have to cut back on my spending, tighten my belt and see what happens."
Supporters of the tax -- from Gov. Rick Perry to the American Cancer Society -- think they have a good idea of what will happen: the state will bankroll hundreds of millions in revenue, and tens of thousands of pack-a-day smokers will decide that the extra $365 a year is the last incentive they needed to finally kick the habit.
But it's discount smoke shop owners like Rhodes, convenience stores and even law enforcement agencies that are less certain of the magnitude. All agree, however, that the extra dollar will be felt, from sales to theft to smuggling.
Rhodes said a representative from R.J. Reynolds Tobacco Co. told him to expect an immediate 20 percent drop in sales at his shop, which has been in Marshall for 11 years. That forecast is based on what happened to owners in other states after similar cigarette tax hikes.
Across the state, smokers stocked up on cigarettes to beat the tax increase. Rhodes said his sales volume was up 40 percent in the weeks leading up to the new year, when he said he'll carry only the best-selling brands since many of his customers will begin buying in Louisiana.
States surrounding Texas all have lower cigarette taxes. The New Mexico tax is 91 cents per pack, Arkansas is 59 cents and Oklahoma's tax is $1.03.
The $1 hike only applies to cigarettes. Taxes on chewing tobacco will increase only about five percent, while cigars are unaffected.
"Statewide, it's hard to say what people are going to do," said Doug DuBois, director of membership serves and governmental affairs for the Texas Petroleum Marketers and Convenience Store Association, which represents about one-third of the state's 10,000 convenience stores.
"For $1.41 (a pack), it is not unthinkable for people to drive that two hours from Houston to Lake Charles."
Less sympathetic are health advocates and state leaders who supported the increase.
About 1 in 5 Texans are smokers, and the tax hike will generate an extra $680 million for the state over the next year.
The Cancer Society estimates that for every 10 percent increase in the price of cigarettes, the number of adult smokers drops 4 percent. That would mean more than 100,000 fewer smokers in Texas, where many communities have already passed no-smoking ordinances.
"If young people are growing up in an environment where it's not acceptable to smoke, they're going to be less likely to do so," said Phyllis Gingiss, professor of health education at the University of Houston.
"“More Iraqis think things are going well in Iraq than Americans do. I guess they don’t get the New York Times over there.”—Jay Leno".
posted on January 2, 2007 12:29:43 PM
I've seen you mention that before, Classic.
I did investigate an ad in one of those 'rag' magazines where they sold them for anywhere [depending on brand] from $14.00 a carton to $17.00 a carton.
I just wasn't too trusting of having to give my CC# to someone in another country.
Besides some have said that the ones they sell are stale/real old...others have said that you don't know what they've put in them...where they actually came from.
I'm not that brave - to give my CC# to some unknown person in another country.
posted on January 2, 2007 02:20:28 PM
Yep they went up and not only with the tax. I checked the usual store if I need a pack to see what they did they went up from $3.05 a pack to over $5.25 I see that is more than the dollar it was supposed to go up.
I am going to just have to quit! or go to Indian reservations in Oklahoma about 70 miles away.
************** Check it out
posted on January 2, 2007 02:31:36 PM
Linda I get at http://www.smokes-spirits.com/index.aspx They're an Indian Reservation.I actually use my checking account number.I've never had a problem with them.
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If you dont want to hear the truth....dont ask the question.
posted on January 2, 2007 04:30:59 PM
I hear that they (internet sells) charge the tax rate for the state they send them to so if that is true would be a BS-PITA. Anyone know if they charge the tax for the state to send to??
************** Check it out
posted on January 2, 2007 10:11:27 PM
There are millions of people who get heart disease and die from lung cancer who NEVER smoked either.
Many even die from consuming way too much alcohol also. Liver damage.
Don't think anyone would ever say smoking is good for anyone...but giving ones CC to some unknown person in a foreign country is asking to be ripped off.
posted on January 3, 2007 10:41:10 AM
Cigarette smoking is the most preventable cause of illness and death in the U.S.
Cancer...not only lung cancer Heart and blood vessel disease Lung disease Gastrointestinal disease
Bad breath
Bad smell
Decreased ability to participate in physical activities
Early skin wrinkling
Higher risk of Bone fractures
Fires
Sleeping problems
Expensive
Sore throat
Stained teeth
posted on January 3, 2007 12:17:12 PM
Paying for your sins is required. Paying EXTRA for your sins is good for those who don't share your particular death wish. You could always go to Mexico for your smokes, or to an Indian reservation smokeshop. They're not required to charge the additional taxes in most states. Tobacco is the real Montezuma's revenge.
posted on January 3, 2007 12:48:29 PM
It must be a tough addiction to overcome. I'll bet that with the price of ciggarettes escalating along with the overwhelming number of associated health problems that a lot of people would like to quit.
Mingo, I don't drink or smoke and never have. So your suggestion on the other thread that I have a drinking problem is just more of your nonsense. The fact that you will make such unfounded accusations says a lot about you, however.
