Tax Increase Generates Big Bucks

Cigarette sales are down in Texas thanks in part to a new tax passed late last year. And even though the sales are down, the state of Texas still has a lot to gain at smokers expense. Bryan Anderson has been smoking since he was thirteen, but since the cigarette sales tax went up earlier this year hes nearly quit his longtime habit. "I smoke cigars now, I mean I cant afford a $5 pack of cigarettes," said Anderson. Back In January the tax on cigarettes went from 41 cents to a dollar 41 cents per pack. And for smokers like Bryan the new tax could add up to about 15 dollars a day to support his habit. "I used to smoke 3 packs a day. But I just cant afford that." The money generated from the tax is supposed to go toward lowering local school property taxes. But since the tax went into affect, cigarette sales in Texas are down 12 percent from where they were this time last year. "I dont know how theyre gonna benefit from it. Because of a lot of people quit. So that just cuts out the money that theyre earning on it." Even though sales are down, the state of Texas still stands to gain a lot of money rom the tax increase. This year the the cigarette tax is expected to put $491 million into the property tax relief fund. Because for some for some die hard smokers, like Dena Hadaway, no price is too high. "Well its not a whole lot we can do about it. I mean if youre gonna choose to smoke... youre gonna have to pay the price." With the increase... the state of Texas now has the 14th highest cigarette tax in the nation.