
Tobacco World Owner Wayne Moss raises the price on the Lumbee brand of cigarettes he manufactures to $2.75 a pack Tuesday as another 45 cents was added to the state excise tax on a pack of cigarettes.
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The price of cigarettes, alcohol and virtually everything besides food went up in North Carolina on Tuesday.
Lois Loflin of Norman said it is those on a fixed income, like herself, who are hurt the most by tax increases.
“My husband’s Social Security check is all I get,” she said at Food King in Ellerbe. “It just seems like the price of everything goes up, but people don’t get any more money to pay for it. It’s just hard. I’m glad I can do what I can.”
The state’s sales tax went up a penny on the dollar, meaning county citizens will now spend 7.75 cents tax on every dollar they spend on cleaning, health and beauty products at the grocery store. That also goes for clothing and appliances, and is expected to bring in more than $800 million this fiscal year.
The move was part of a strategy by state lawmakers to raise $1 billion in new revenue.
However, increased excise taxes on tobacco and alcohol will raise less money and more profoundly affect the poor.
The excise tax on cigarettes will mean 45 extra cents a pack, putting the price of some name brands near $5, and yield about $30 million in taxes this year.
The beer excise tax will rise from about 51 cents a gallon to about 62 cents a gallon, unfortified wine will be taxed at a 5 cent higher rate to reach about 29 cents a gallon and the excise tax on liquor will rise from 25 to 30 percent.
Between the three increases in alcohol prices, the state expects to bring in more than $34.5 million.
The state tax on food will remain at 2 cents on the dollar.
Behind Loflin in line, Kimberly Robinson of Ellerbe had a different perspective.
“It doesn’t bother me, because before the taxes didn’t seem like much at all to me,” she said. “To me, it’s not a big increase. I mean, how are we gonna live if we don’t pay taxes, and you’ve got to pay for the stuff you want anyway.”
She said the fact she doesn’t smoke or drink beer and wine also means the impact on her will be minimal.
Tammy Godfrey is the front-end manager at Food King, and she said tax increases hit small communities like Ellerbe the most.
“We’ve got a lot of customers on a fixed income, and a lot of customers who are low income,” Godfrey said. “Now, even the cheap cigarettes, they can’t afford to buy.”
She said the cheapest brand the store carries shot up to $3.39 a pack, before sales tax, Tuesday.
“They’re not really saying much about (the sales tax),” Godfrey continued. “They’re fussing about the cigarettes. The beer, either, nobody’s mentioned that, but they’re upset about the cigarettes.”
Kenny Brown, who works in Rockingham, stepped to the counter of Tobacco World on Highway 1 Tuesday morning to get his stand-by companion — a pack of Salem Lights.
“They just went up 45 cents a pack,” he said. “It’s terrible, man, I think it’s ridiculous. Here we are in a financial crisis and they’re taking more money out of people’s pockets.”
He said he’s not contemplating quitting, though.
Wayne Moss is the owner at Tobacco World, and his company is involved in the manufacture, distribution and retail sale of cigarettes. He said taxation has caused business to shrink over the past 18 months. He’s gone from employing 19 people and running 10 trucks to employing five people and running two trucks.
“They have taxed tobacco to death,” he said. “Eighteen months ago, it cost a man and wife, if they both smoke, $20 a week for cigarettes. Now they have to spend about $100 a week.”
Moss said he offered an alternative taxation plan to an elected North Carolina official over the phone recently. He said is wouldn’t disproportionately affect the poor .
“I said, ‘Why don’t we put a dollar tax on every dozen golf balls?’” he recalled. “Then, nobody will quit playing golf.”
He said the official hung-up.