Wednesday, March 21, 2007


Another Cigarette Tax!


Cigarette Retailers Fear Higher Tax Means Lower Business

Des Moines - Some Iowa retailers are worried Governor Culver's proposed dollar-per-pack increase in the state's cigarette tax will force customers to cross state lines to buy cigarettes.

The tax is currently $0.36 a pack.

Culver is proposing to increase the tax to one dollar, in hopes of generating $130 million in state revenue.

Retailers in Keokuk fear their customers may go to other states such as Missouri, where the tax is $0.17 a pack.

The increase was approved this week by the Senate.

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