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Officials: Higher tax slackens cigarette sales
AP State officials say Iowa’s higher cigarette tax is prompting more people to kick the habit - or at least try. Cigarette sales in Iowa have dipped 30...
State officials say Iowa’s higher cigarette tax is prompting more people to kick the habit - or at least try.
Cigarette sales in Iowa have dipped 30 percent in the last three months, said Mike Lipsman of the state Department of Revenue. The decrease follows the $1-per-pack tax increase implemented by the state in March, forcing people to dish out an extra $1.36 for smokes.
Lipsman said that the decrease in sales can be attributed to a drop in demand, but he acknowledges that more Iowans may be buying their cigarettes in neighboring states that have lower cigarette taxes.
Lipsman said 246.3 million packs of cigarettes were sold in Iowa last year - a figure he expects to drop to 190.5 million this year and to 186.6 million in 2008.
