Local Cigarette and Tobacco Taxes
In some states, local governments have been granted the authority by the state legislature to impose local cigarette or tobacco taxes on the retail sale of tobacco products.
Often, the purpose of these taxes is to raise revenue for various spending initiatives and projects, and they are introduced to promote public health.
However, if the tax discourages adult consumers from switching from the most harmful to significantly less harmful alternatives, local tobacco taxes are actually detrimental to the public health.
With tobacco stores dependent on the sales of their products for virtually all of their profits, and with convenience stores relying on tobacco for nearly 40 percent of in-store sales, a downturn in cigarette and tobacco sales would result in employee layoffs and store closures.
High local taxes on cigarettes and tobacco create an anti-business environment in communities. These regulations serve as a disincentive to business expansion and new locations opening in your towns, cities, or counties.
To learn more about efforts to introduce local cigarette and tobacco taxes and arguments against such efforts, please reference the below fact sheet.