Mar 21, 2011

Possible High Tax Increase on Tobacco

Small business owner Bret Chastain said, “There’s enough regulation on small business as it is. Being a tobacco shop on top of being a small business we feel like we're being double regulated and double taxed.”

Chastain's family business, Sweetbriar Smoke Shop, has been around for 35 years. Over the course of time, Chastain said his family has seen Virginia cigarette and tobacco taxes grow 10% in 15 years.

The proposal by the Special Council on Tax Reform and Fairness for Georgians would increase tax on cigarettes from 37 cents to 68 cents per pack.

Joshua Nazario said even with the increase in Georgia he will continue to shop in the peach state because of the customer service. He said this proposal isn't enough to keep him from quitting smoking entirely. “It would have to be a tax of like $5. To be honest it would have to be substantial, and even then I would just cut back to fit within my personal budget,” Nazario said.

Fred Williams owns F & M Cigars in Phenix City. He hopes his business will be booming if the proposal becomes a law. He said his customers come from both sides of the river. Williams said, “Georgia’s losing a lot of money, and they certainly are going to lose a lot more if they increase it.”

In Columbus, Chastain said his shop is very vulnerable in the future, “If it tobacco tax goes to 25% we feel like it may be a few short number of years before it goes up to 27 or 30%, which would really be bad for our business.”

Chastain said if tobacco cost increased significantly it would do major harm to his small business.

The American Cancer Society is lobbying for a new bill. A representative from their company said even if they can't get a smoker to quit entirely, getting them to reduce their consumption is a step in the right direction.

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