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Trade group pushes repeal of Beach cigarette tax hike

Posted to: News Virginia Beach

Background
A tax increase that started Tuesday raised the per-pack tax on cigarettes to 61 cents from 50 cents. Critics say this could cause smokers to buy cigarettes elsewhere and create a budget shortfall.

Cigarette taxes in Hampton Roads
In Norfolk taxes on each pack of cigarettes are 65 cents. In Virginia Beach the cigarette tax, at 61 cents, is designed to raise $13.2 million this budget year. The increase would provide $2.4 million, money that would fund projects in the city’s strategic growth areas. In Portsmouth, Chesapeake and Suffolk cigarettes are taxed at 50 cents per pack.

VIRGINIA BEACH

A national trade group has huffed and puffed for city leaders to reconsider the cigarette tax increase that went into effect this week.

The National Association of Tobacco Outlets sent a letter to City Council members asking them to revisit the tax. Councilman Bill DeSteph said "chances are" he would push the issue.

The increase, which started Tuesday, increased the per-pack tax on cigarettes to 61 cents from 50 cents, a 22 percent rise.

Thomas Briant, the trade association's executive director, said the city's decision to repeal a tax increase on machinery and tools - after Stihl Inc. and other manufacturers complained about that 90 percent increase - means the city should listen to tobacco outlets, too.

He said taxes on cigarettes become regressive and can cause budget shortfalls when smokers buy elsewhere. The group sent a letter this week to legislators in all 50 states saying continued increase on cigarette taxes are "killing the goose that lays the golden eggs."

"We're trying to forewarn the City Council," said Briant, whose office is in Minnesota. "Reconsider this or you will find yourself in a deficit situation you will have to correct."

DeSteph said he is concerned that manufacturers and tobacco outlets say they had no forewarning of the tax increases on their industries.

City Manager Jim Spore has said the city complied with public notification laws, but Briant questioned why the city didn't go beyond the law's minimum requirements.

"Before you increase a tax, wouldn't you want to talk to them?" DeSteph asked. "I would think you would."

Councilman Jim Wood said businesses have the burden of understanding the economy around them. Wood didn't hear complaints before the tax increase and noted that no one has spoken against it in front of the council, even now.

"If you're going to be in business," Wood said, "you have to stay on top of what the locality is theoretically going to do to your business and speak out publicly."

Max Weiner, a local smoke shop owner, said he couldn't get to this week's meeting because he was sick, but he said the council should be fair about how tax increases are levied.

"It seems everybody goes after the cigarette industry," Weiner said. "It's just crazy."

The tax increase leaves Virginia Beach with the second-highest rate in the region.

Norfolk taxes each pack of cigarettes at 65 cents. Portsmouth, Chesapeake and Suffolk all tax packs at 50 cents.

In Virginia Beach, the cigarette tax is designed to raise $13.2 million this budget year. The increase would provide $2.4 million, money that would fund projects in the city's strategic growth areas.

DeSteph said the city should communicate more directly with people and businesses who pay taxes to avoid these kinds of conflicts.

"There's a better way to do business," he said. "We just have to figure out what it is."

Richard Quinn, (757) 222-5119, richard.quinn@pilotonline.com



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Kate isn't the only one

Kate isn't the only one that likes to use the "ignorant" word. It amazes me the limited vocabulary and limited knowledge of adjectives to define your intellect on just a few well chosen albeit insulting words. Not coming to your defenxe here Kate, and I can't imagine you getting close enough to a cigarette butt to pick it up.

Tobacco Lobby?

Chris 33, do you even have any clue what you are talking about? Tobacco lobby? What tobacco lobby? The only lobby here is a trade association of small businesses looking out for themselves and their customers. If you are talking about the tobacco industry you're delusional. PM nd the rest of the big tobacco companies don't give a dang about smokers.

Philip Morris gave Mark Warner carte blanche to raise the state cigarette tax in exchange for his pledge to force PM competitors to pay intot he master settlement agreement.

I wish I could live my life

I wish I could live my life with such a narrow veiw of the world.I have no kids. I don't need sidewalks. I pay my own health care. I own residential and commercial property. I am selfemployed. So I am pretty sure I pay more taxes than most people and I don't get much for it. I if took your veiw I want my money spent on stuff I use. Open up a city gun range and make a motorcycle only lane. And when they say eggs are bad again I am all for the egg tax. I smoke. I pay taxes. I have ever right to smoke and I already pay for too many other people. Have a school bus come get me and take me to work.

Vote out Bill DeSteph

The National Association of Tobacco Outlets sent a letter to City Council members asking them to revisit the tax. Councilman Bill DeSteph said "chances are" he would push the issue.

Vote Bill DeSteph off the council, now. He is the pocket of the tobacco lobby.

about your taxes and smoking bans

For those who want to ban smoking do you have any clue what your tax increases would look like to make up the slack? Be careful what you wish for!

Pay for your own litter

Each smoker should be taxed enough to pay for someone to follow them around and pick up the discarded butts they toss in the street. Smoke and destroy your own life if you will...but that's no excuse for being a filthy pig. Perhaps a $1000 fine for littering..strictly enforced.

Let's tax donuts

I get it. People don't like smoking so they want to tax it so they don't have to tolerate it. They use the argument that it kill's people and costs a lot of money when smokers become ill. Fine.

Now, we must start putting a heavy tax on Dunkin Donuts and Kispy Kreme, after all obesity is a proven killer. It leads to many medical problems that will cost the tax paying public a fortune. Good call non-smokers, let's tax everything that isn't safe for consumption. Imagine the amount of revenue the city will have from Pepsi and Coca Cola sales!!

By the way, I don't smoke so don't even try that argument.

discriminate

Why is it the sole responsibility of the smokers to fund projects in the city's strategic growth areas. That burden should fall on the entire city.
But nope tax the smokers and the drinkers of the world. Stupidity Rules !!!

NEWS FLASH! No one makes it

NEWS FLASH! No one makes it out of here alive. We are all going to die of something. So tax whatever you want. But somethings going to kill you no matter how much better you think you are than us lowly smokers.

VB Cigarette Tax

DeSteph is an embarassment to Virginia Beach. I am glad to see that Jim Wood takes a business-like approach.

You smokers who want to waste auto fuel driving to North Carolina to buy cigarettes are free to do so. Stupid, but free.

Campaign Funding

DeSteph's position on the tobacco tax is laughably transparent - the man is simply looking out for the blessing of his campaign donors. Just like Wilson & the boat tax. Public servants? I think not!

What is really needed:

A tax on city council members that make stupid decisions. With a tax like that, we could clear up ANY budget short fall.

Well , then joanie

I would suggest if you wish to deny services of any type to smokers (or other you disapprove) you best not be expecting higher taxes from them to balance bloated budgets.

How about we deny medicare

How about we deny medicare payments to individuals with a smoking related illness.

No matter who it is. No one

No matter who it is. No one group of people should be paying more of the taxes. If you don't smoke why should I pay your way. I am a single self employed male that owns a house and commercial property. I have no kids. And I smoke. So who pays more taxes and gets less for it than me? Everyone in this city has a point that unfair taxing will start to affect them and they will say it's unfair too. So don't say it's ok to tax smokers because they will find a way to tax you too. If the city starts paying for my Health Insurance it might make sense. But I get nothing for all the money I pay. I am not represented at all in any form of government and I pay the most.

Ask those who you propose to tax? Hmm,I wonder what they'd say?

Desteph can't help his own ignorance...

Listen to who?

DeSteph wants to listen to business and people that pay these taxes huh? Why doesn't he care to listen to the homeowner who payes more taxes than anyone else? I know, because the business are the ones that pay to keep them in office. The average homeowner is getting the short end and paying the most. RENO ... Re-Elect No One!

Vote in november. Vote for the citizen. Run business and developers out of control of VB council. Give the government back to the people.

A good reason to keep lower the prices

Just keep lower the taxes and price on the cancer sticks till all the weak have died off. It is just a slower process of culling the herd so the strong will thrive. Long live the non smoker.

Tobacco Tax

Let me see if I have this right?? It is a proving fact that smoking cigaretts causes cancer.! And if the powers to be are not strong enough to ban it outright we will keep raising the taxes so they cannot afford it???. If there is going to be an excess then maybe they should put that money into the Roads that everybody is complaining about!. How dare anyone to expect Goverment to be RESPOSIBLE for there action's!!

Raise cigarette Tax

Raise Cigarette Tax until Mexicans smuggle tobacco over the border hidden in marijuana bales.

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