After spending $4.50 for a pack of his favorite brand of cigarettes, Shane Mackanick declared: “It’s time to quit.”
The 37-year-old from Vinco also said, “When it goes up over $5, I’m done.”
That’s apparently about to happen.
On Wednesday, a sharp 62-cent increase in federal taxes on each pack of cigarettes goes into effect. Under a law signed last month by President Barack Obama, the revenue will benefit the State Children’s Health Insurance Program.
The tax hike will take the cost of a pack of Marlboro regulars – including sales tax – from $5.46 a pack to about $6.10 a pack at Puff & Snuff in Vinco.
Then, “I’m done,” Mackanick said.
And, if Gov. Ed Rendell gets his way in the 2009-10 state budget, Pennsylvania will tack on another dime a pack – to $1.45 in state taxes. Total state and federal taxes per pack would rise to $2.46 – $17.22 a week in taxes for someone with a pack-a-day habit.
Retailers say they are urging their customers to buy now.
Some customers are responding – stocking up on affected tobacco products ahead of the tax increase.
“This month has been crazy,” said Amy Barr, 39, of Nanty Glo, a clerk at Puff & Snuff.
“One day this month, we had record sales,” she said.
She also has found that roll-your-own tobacco – and rolling machines – are becoming increasingly popular.
“We had four machines (in stock) last night,” Barr said Thursday, pointing to the one rolling machine – $34 retail – that remained unsold.
While taxes on loose tobacco will skyrocket on Wednesday – up more than 20-fold to $24.78 per pound – it still will be cheaper than buying cigarettes by the carton. A pound of tobacco can make more than two cartons of smokes.
Customers are buying loose leaf tobacco by the case. Puff & Snuff has dropped its four-bag limit on roll-your-own tobacco.
Owner Jody Stem of Habits Beer and Tobacco in Johns-town said he thinks he will lose business for a while after Wednesday because people are hoarding cigarettes.
But the customers will return.
“If you’re a smoker, you’re a smoker,” Stem said philosophically.
Local News
Related Photos
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Jody Stem, owner of Habits Beer and Tobacco at 960 Franklin St. in Johnstown, stocks loose tobacco that smokers can use to roll cigarettes. Dave Lloyd
Discussion
Smokers facing another tax-driven price increase
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