Brief: Tobacco retailers say they're selling far fewer cigarettes since a tobacco tax went into effect in July. Now one tobacco retailer says this tax may backfire against the state.
Tobacco retailers say they're selling far fewer cigarettes since a tobacco tax went into effect in July. Now one tobacco retailer says this tax may backfire against the state.Wholesalers like Tobacco Max are reporting a big drop in sales since the tax hike took effect.
Management at Tobacco Max believes sales will eventually improve, but The Tinder Box owner Joan Cvar doesn't agree.
"[Customers] are going to see: If they can get them so much cheaper, and if they can buy something a lot cheaper out of state, why not?" Cvar says.
Many people think of cigarettes when they hear about the tax, but she says the tax has been more aggressive on pipe tobacco and cigars.
"Some cigars are going up $3 to $4 apiece," she says.
Cvar says buying tobacco online isn't allowed, but people tell her they're doing it anyway. That's tax revenue that she believes the state will never get back.
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