ND0429117

Title: Maine Bill Would Hike Cigarette Tax by $1.50

Description: In nearby New Hampshire, the Senate tabled a measure that would have slashed its cigarette tax by a dime.

Page Content:

AUGUSTA, Maine ? Maine convenience and grocery stores are mounting opposition to a measure that would add $1.50 to the state?s cigarette tax, the Associated Press reports. The Taxation Committee is currently reviewing a proposal that would increase Maine?s cigarette tax to $3.50 per pack.�

While supporters see a higher tax as a way to curb smoking, retailers counter that more taxes will drive business to neighboring states, such as New Hampshire, and hurt their businesses.

?We are already 12 cents a gallon higher in state excise tax,? Jamie Py with the Maine Oil Dealers Association told NACS Daily. ?New Hampshire has no sales tax. How much more business do Maine cigarette tax supporters want to send over the border??

Meanwhile, the New Hampshire Senate temporarily shut down a proposal to lower the state?s tobacco tax by a dime, the New Hampshire Union Leader reports. The House had approved the measure as a way to generate more sales from out-of-towners.��

N.H. Governor John Lynch said that reducing the tax would lead to revenue loss and that retailers would have to sell 15 million more cigarette packs to make up for that drop. Senate Finance Committee Chairman Chuck Morse said that until they could get a clearer look at what would happen to the tax revenue, the issue would be tabled for now.

Content Subject: Operations

Formatted Article Date: April 29, 2011

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