Vinton approves cigarette tax increase

Vinton is one of thousands cash-strapped US towns that have run out of sufficient funds in the time of economic downturn. Therefore, the local authorities decided to turn their heads to “sin taxes” as an easy way to replenish the town’s treasury. On Tuesday, The Vinton Town Meeting passed the 20 cents-per-pack cigarette tax increase, cutting the initial 30 cent proposal by one-third in order to make concessions to local cigarette retailers.

However, many residents believe that the increase would not collect the anticipated revenue but only make local cigarette business suffer, since due to the fact that Vinton has never imposed a citywide tax on cigarettes, has contributed to constantly high sales in local businesses because they had many customers from neighbor cities.  

Therefore, the tax hike is perceived to end in dramatic sale declines for Vinton retailers.

45-year old bus driver John Whitaker has been buying a carton of his favorite cigarettes each month for decades. However, with all the previous cigarette tax increases including the landmark 62 cents increase implemented by federal government back in April, the carton of his smokes went up by $7. When he was told that the price of the cigarettes is going up again, Whitaker was left fuming and wondering. 

"Another price increase? That is ridiculous. Those folks are only thinking about their wallets. There is no country in the world with such immense cigarette tax and prices," Whitaker complained.  

Meantime, more people coming to the Cigarette Bliss store were furious other 20-cent a pack tax increase.  

"It would be less expensive now to hit the road and stock up in other place," admitted Mandy Loom, who said she was loyal to her town’s cigarette stores all her smoking life but now it has been a high time for changes.

Many Vinton smokers agree in opinion with Loom since in Roanoke County there is no cigarette tax because it is not possible to impose such under the Virginia laws. Thus, local business owners are afraid that Vinton tax increase will lead people to buy cigarettes there.

Cigarette Bliss store owner Jay LaMayo says that he expects local sales to drop by up to 65 percent when the owners would have to add $3 to the price of each carton.

With the recent tax increase the aggregate tax hike would make up more than 40% as judging by the price per carton, and in time of difficult economic times it would hurt the business dramatically.

Fortunately for LaMayo, he opened another cigarette shop in Roanoke County. So, in case the Vinton shop sales would decline, his Roanoke County shop could have a significant rise.

The Vinton cigarette tax enters into force on August 1.