CHARLESTON, W.Va. — The president of the WV Oil Marketers and Grocers Association is concerned that the 65 cent tobacco tax raise, which is now in effect, will hurt tobacco sales at stores near West Virginia’s border states.
OMEGA represents convenience stores and gas stations across West Virginia, and Jan Vineyard said the tax has the potential to hurt where smokers can decide to travel across state lines.
“I think the impact’s going to be huge just because it makes it less competitive on our borders, particularly two of our borders” she said. “Our tax was 55 (cents), we’ve gone to $1.20. Virginia is at 30 cents. So at 55, I’m going to say some West Virginians didn’t cross the border for a quarter. That’s for a pack.
Vineyard went on to explain that in terms of cartons, the tax is $2.50 which is significant for those who buy cigarettes in bulk.
“West Virginians, as far as taxes, we’re going to lose. I’d like to encourage West Virginians to buy their products in state; support our state,” Vineyard said. “The reason that we had to take this tax hike was because the state is in financial hardship.”
Vineyard said Gov. Earl Ray Tomblin’s original 45 cent proposal on a pack of cigarettes would have been more reasonable.
“You wouldn’t think 20 cents (from the original 45 cent proposal) makes a big difference, but it really does. And again you have to think about the carton price,” Vineyard said. “When people come in to buy those cigarettes they buy $4 to $5 worth of other products.”
Vineyard also didn’t think the tax would do anything as far as smoking cessation, which was why some legislators lobbied for it.
“It may curtail some smokers, but I don’t think it does,” she said. “50 percent of our state is on the border, and then we have a huge interstate right through the middle. People that smoke know the differences (in prices) just like on gasoline.”
The 65 cent raise went into effect shortly after it was approved during the special legislative session on the budget last month. It also includes smokeless products such as snuff and pouches, e-cigarettes and vaping fluid.