Tax hike won't send smokers to N.C., group says
American Cancer Society cites experience of Georgia, where no border crossing noted Associated Press COLUMBIA--Some supporters of a higher cigarette tax in South Carolina have new evidence that raising the 7-cent tax won't cause smokers to flee to North Carolina in search of cheaper cigarettes. The American Cancer Society said Monday an examination of Georgia's tobacco tax collections shows a higher tax in that state did not result in smokers there heading to South Carolina for cigarettes. Last summer, Georgia raised its tax on cigarettes from 12 cents to 37 cents a pack. Figures from the Georgia Revenue Department show tobacco tax collections have more than doubled to $227 million during the 2004 fiscal year from $111 million in 2003, the cancer society said. South Carolina tobacco tax collections have declined during the past three years and show no jump from border-crossers in the past year, the group said. South Carolina's numbers for the 2004 fiscal year aren't all in, but so far collections have not varied much from month to month, the group said. Studies of 35 states that have raised cigarette taxes in the past two years show all have increased tax revenue, the cancer society said. Yet, some South Carolina legislators have argued against a higher tax based on the "urban legend" that a higher tax will mean less revenue, said Lisa Turner, director of state tobacco initiatives for the organization. The group was particularly interested in what is happening in Georgia because lawmakers have not been persuaded by data from states outside the Southeast. House Speaker David Wilkins, R-Greenville, said it's no surprise Georgia's decision to more than double its cigarette tax has resulted in more tobacco tax collections. He still thinks a large increase in South Carolina's tax could cause smokers to head north for cigarettes. "If South Carolina went to the national average and North Carolina still stayed at a nickel, I think it would have an adverse effect, especially on the border counties," he said. Wilkins said he does not support a cigarette tax increase without Medicaid reform. The American Cancer Society says it's too soon to know whether the number of Georgia smokers decreased after the tax increase, but studies in other states have shown a higher cigarette tax tends to decrease tobacco use. "It's usually higher for the youth smokers because what happens is they're the most price sensitive -- youth and low-income smokers," Turner said. About 36 percent of South Carolina youths and 26 percent of adults are smokers, the cancer society said. The average cigarette tax for states is 79.2 cents a pack, according to the National Center for Tobacco-Free Kids.
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