The Vermont Grocers Association says that storekeepers appreciate that Governor Peter Shumlin continues to stand firmly against sales and excise taxes that will deteriorate retail sales by displacing them to neighboring New Hampshire or the Internet. However, in spite of that opposition, the Legislature continues its appetite for more sales taxes and tobacco excise taxes.
On Monday afternoon the Senate Finance Committee advanced a 30% cigarette tax increase, which will dramatically increase Vermont's already high tobacco taxes. Currently Vermont has the 7th highest cigarette tax rate in the country and another tobacco tax increase would make Vermont near the top of the list.
An increase of this magnitude will remove most of the revenue Vermont currently receives from New York customers
New Hampshire cigarette tax is currently just $1.68 compared to the proposed $3.42 for Vermont
Vermont will send even more sales to New Hampshire & lose sales from NY on a wide variety of products including tobacco, groceries, gas, restaurant, clothes, etc.
Consumers spend on average $2.50-$3.00 at convenience stores on other products when they buy gas or cigarettes
Vermont has a 6% sales tax, New Hampshire sales tax is ZERO %, this alone adds about 50 cents to a pack of cigarettes in Vermont.
A recent study in New York concluded that state taxes were not collected for every one of two packs consumed in that state because of their high tax and rampant black market
Inventory costs and potential for break-ins will increase with the higher tax
Meanwhile, there is a proposal from the White House to increase the federal tax another 94 cents per pack on top of any state tax hike
Jim Harrison, president of the Vermont Grocers Association said, We ask the Legislature to support your local retailers and Governor Shumlin and oppose an increase in the tobacco tax.Enough is enough with more sales and excise tax hikes.