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
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Smokers facing another tax-driven price increase
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