Virginia Set to Increase Tobacco Tax on April 1

By Farah James
Rotunda Reporter

Tobacco taxes are continuing to be a main focus in 2009. The price of cigarettes will increase throughout the United States as a result of a 62-cent tax increase on tobacco products, which will bring the federal cigarette tax to $1.01.

By February 4, both the Senate and the House of Representatives had approved the State Children's Health Insurance (SCHIP) bill, which comes as part of a healthcare bill that funds insurance to uninsured children who do not qualify for Medicaid. The increase in tobacco product tax is intended to help pay for an expansion of the program and to cover 3.5 million uninsured children at a cost of $32.8 billion.

"I think it's good because the money is going to a good cause," said Lynne Grosso, a Longwood junior.

Later the same day President Barack Obama fulfilled a campaign promise by signing the legislation into law. The tax increases will officially take effect on April 1.

Due to the tax increase, customers have quickly learned that the era of $5 per-pack cigarettes has arrived earlier than expected. Lauren Zoby, a Longwood freshman who smokes regularly, was upset when she had to buy cigarettes in the local community. "I'm from Woodbridge, and it's terrible. They [packs of cigarettes] were $3.76; now, they're already $5." According to Farmville's CITGO and Cash and Carry convenience store manager Mickey Mo, the prices of cigarettes went up on Monday, March 16, and customers since then have been appalled by the increase.

Two major cigarette companies, Philip Morris and R.J. Reynolds, have already increased their prices two weeks prior to the planned tax increase date. Since the government is not collecting taxes until April, money from this price increase is going to the tobacco companies for now. Philip Morris, who is known for popular brands such as Virginia Slims, Marlboro and Parliaments, upped their prices to 70 cents per pack and $7-$8 per carton. R.J. Reynolds, manufacturer of Camel, Kool and Winston-Salem brands, upped their prices 40 to 78 cents per pack.

"Now that we're accepting another additional increase in April, I would like to say we will be the April fools," says Mo.

The biggest target hit is roll-your-own tobacco. A one-pound bag that now costs $16.99 on average will be $40 after April 1. This price increase has left customers upset. "I don't like it; it makes it harder to buy cigarettes, and I find myself looking for cheaper prices, said Ashley Tignor, a senior at Longwood. It is uncertain whether there will be an additional increase after April.

Buying cheaper brands isn't uncommon amongst tobacco customers lately. Customers are now looking for alternatives such as quitting or are switching over to cheaper brands. Angie, a store manager at Valero who requested her last name not be mentioned, said "Some people say they're just going to quit smoking. One lady came in here and even said she'll stop eating before she stops smoking." If quitting isn't an option for customers, switching over to a cheaper brand most certainly is one. This is true for Tignor: "Since the increase, I started smoking Camel Lights instead of Marlboro Lights because they're not as expensive."

Although one focus of this bill is to expand the SCHIP program, Charles D. Connor, president and CEO of the American Lung Association believes there is another goal in the bill, and that is to decrease the percentage of smokers. In a press release last month he said the new legislation is "a victory that will improve health, increase children's health care coverage and reduce smoking." He added, "Half of all smokers will die prematurely from their addiction, increasing the federal cigarette tax will go a long to save young lives and is also good for our economy."

Angie said she thinks it is unfair to increase tobacco taxes." They're targeting cigarette smokers instead of targeting everybody. I'm not a smoker, and it doesn't concern me personally, but I'm bothered by it because it appears their punishing smokers."

Tignor is choosing to look at positives of the new tax.. "I've always had the thought of quitting; this just adds another variable," she said.