Florida tax on cigarettes goes up, Alabama cashing in?
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Updated: 8:29 AM Jul 2, 2009
Florida tax on cigarettes goes up, Alabama cashing in?
Florida's state tax on cigarettes went up $1 on July 1st, so will smokers turn to Dothan for a cheaper buy?
Posted: 10:42 PM Jul 1, 2009
Reporter: Ryan Rodig
Email Address: ryan@wtvy.com
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Signs for cigarettes were without prices at a few gas stations in Campbellton, Florida Wednesday.

So it's reasonable that some residents of the Sunshine State are surprised by a new $1 increase in state tax on cigarettes. Dennis Currier of Cottondale was one that was caught off guard by the news because he recently returned from a cruise.

This increase comes 3 months after the federal tax on cigarettes was increased by more than 60 cents. Many cigarette companies have also upped their own prices. It's forcing smokers like Currier to consider a change.

"I am hoping on quitting very shortly here," Currier says. "It is getting a little too much."

While the nearly 300% state tax increase has many in Florida unhappy, some tobacco sellers in Dothan could see a boost bin business.

"We should see a positive impact in the state of Alabama because they are going up $10 a carton (in Florida)," says Sammy Fritcher owner of Smokies in Dothan. "The problem we have had in the state of Alabama lately is that Florida has been lower than us."

But that will no longer be the case. And shops like Smokies, just a short drive up Hwy 231 could benefit.

"We have a lot of people from Northwest Florida that shop in the hub here in Dothan, Alabama" adds Frichter. "We get a lot of phone calls right now wanting to know the prices of cigarettes. They are wanting to know where to shop."

Many elected leaders in Florida are behind the tax increase, including Governor Charlie Crist, who pledged not to raise taxes when running for office. But Crist calls the bill he signed back in May "more of a health issue, than tax issue."

"They are just weeding us all out little by little," says Currier. "Maybe it is a good thing, but it is going to take a lot of will to get a lot of these people to break the habit."

It is estimated the tax increase will bring in $950 million in its first year. The American Cancer Society says a state smoking decline could save nearly $7 billion in future health care costs. They also say studies have shown that increasing the price of cigarette packs directly leads to smokers quiting.

Before the increase, Florida had the 5th lowest tax on cigarettes in the country. Now they have the 22nd highest.

Florida is the 6th state to up its cigarette tax this year.


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