Duncan Suzuki

Widgetized Section

Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone

Cigarette, meals taxes going up

PULASKI — The cost of cigarettes and eating out will be a little higher in the Town of Pulaski come July.
The Pulaski Town Council unanimously voted Tuesday night to up its meals tax and tobacco taxes in order to balance its 2008-2009 budget and make up for revenue lost on smokeless tobacco products.
Town Manager John Hawley said increasing the meals tax from five cents to six cents should bring in an extra $90,000 to $95,000. He said a five-cent tax generated about $490,000 last year.
The owner of an area café asked the town council to consider increasing the cigarette tax more than proposed and leaving the meals tax as it is. He said every restaurant is seeing a decline in business due to area layoffs. Increasing the meals tax will only result in more lost business, he said.
“Tobacco sales are not likely to drop because it’s an addiction. People choose to smoke. It’s a luxury item,” he said in argument of increasing the tobacco tax instead of meals tax.
Despite the café owner’s request, the Town Council unanimously voted to add an extra penny to the meals tax.
However, the Council also voted to up the tax on a pack of cigarettes from 15 cents to 20 cents.
Hawley said three cents of the five-cent increase would help the town make up for taxes it can no longer collect on non-smoking tobacco products. Many jurisdictions recently learned they were not supposed to be collecting a tobacco tax on smokeless tobacco or cigars.
The other two cents of increase will be used to generate funds to balance the nearly $8 million budget.

Comments

comments

Cigarette, meals taxes going up

PULASKI — The cost of cigarettes and eating out will be a little higher in the Town of Pulaski come July.
The Pulaski Town Council unanimously voted Tuesday night to up its meals tax and tobacco taxes in order to balance its 2008-2009 budget and make up for revenue lost on smokeless tobacco products.
Town Manager John Hawley said increasing the meals tax from five cents to six cents should bring in an extra $90,000 to $95,000. He said a five-cent tax generated about $490,000 last year.
The owner of an area café asked the town council to consider increasing the cigarette tax more than proposed and leaving the meals tax as it is. He said every restaurant is seeing a decline in business due to area layoffs. Increasing the meals tax will only result in more lost business, he said.
“Tobacco sales are not likely to drop because it’s an addiction. People choose to smoke. It’s a luxury item,” he said in argument of increasing the tobacco tax instead of meals tax.
Despite the café owner’s request, the Town Council unanimously voted to add an extra penny to the meals tax.
However, the Council also voted to up the tax on a pack of cigarettes from 15 cents to 20 cents.
Hawley said three cents of the five-cent increase would help the town make up for taxes it can no longer collect on non-smoking tobacco products. Many jurisdictions recently learned they were not supposed to be collecting a tobacco tax on smokeless tobacco or cigars.
The other two cents of increase will be used to generate funds to balance the nearly $8 million budget.

Comments

comments

You must be logged in to post a comment Login