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.
