If the Massachusetts House gets its way, the Commonwealth could soon double the tax it levies on cigarettes, to $1.51 per pack. New Hampshire retailers say that increase could translate into higher cigarette sales in the Granite State. But anti-smoking activists in New Hampshire are preparing a media campaign to reduce smoking. NHPR's David Darman has more.
Only the Massachusetts House has passed the measure to raise the state?s cigarette tax. So the legislation?s future is uncertain. Still, many convenience store owners in Southern New Hampshire are already anticipating increased sales in their stores. Chuck Kiritsy owns the State Line Grocery store in Fitzwilliam. He says his store relies on Massachusetts customers, and past tax hikes in the Commonwealth have clearly been beneficial to his store.
04 138 I haven?t really figured out percentage wise, how much it increases. But it increases quite a bit,?
Many New Hampshire merchants say the state?s lower cigarette tax of 51 cents per pack is just part of what attracts consumers from other states. John Dumais represents 700 stores as president of the New Hampshire Grocers Association. Dumais says higher taxes in Massachusetts make the Granite State?s tax advantages stand out.
02 any kind of increase in a tax in a surrounding state will have a dramatic increase in volume sold in nh. We are known throughout the northeast as the low priced leaders for alchohol, tobacco, no sales tax, no bottle bill. All the reasons that people would want to buy their commodities in nh. 02 22
Anti-smoking advocates in New Hampshire agree with merchants that the state?s entire tax picture encourages some purchases, and even some tourism. But Rob Werner, campaign manager for New Hampshire Healthy Families, says the state?s own research shows the reason people come to New Hampshire has more to do with the absence of a sales tax than any other factor.
08 42 ?I think that the evidence we have from d-r-a suggests that cigarette taxes as the driver of why people come across the border is pretty small. There?s a fairly small percentage of people who will do that. But compared to why people come to nh to shop is really reflected in our sales tax. 08 113
New Hampshire Healthy Families is planning to begin a public awareness campaign next week, urging citizens to support raising New Hamphsire?s cigarette tax by one dollar per pack. In one of its ads, Katherine Pike, Miss New Hampshire in 2001, says the tax hike will have at least one public health benefit.
SOUND UP: how can we protect ourselves and our families? Public health experts say that the best way is to increase the price of tobacco. They?ve proven that when the price of tobacco goes up, teen smoking goes down. And the higher we increase the price, the more kids we save.
FADE
State lawmakers have considered raising cigarette taxes in the past. But most efforts have failed. New Hampshire Healthy Families says it is working to put the tax hike before state lawmakers again. Meanwhile, another measure is already languishing under study in the House Ways & Means Committee. Chairman David Alukonis says that measure would actually lower the cigarette tax.
19 14 there is a belief that if we lower our tax rate, that more people will come, and that perhaps we could generate more revenue by reducing the tax rate on tobacco. I don?t necessarily believe that, but I think the dynamics need to be studied. 19 32
The next Legislature will certainly hear the economic reasons to keep the cigarette tax low, and the public health reasons for raising them. That debate may not begin for lawmakers until January, when the legislature reconvenes. But the effort to sway public opinion in New Hampshire has clearly already begun.
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