Local Cig Sales Steady Despite Tax Hike, Fuel Prices
Posted
Jennifer Peryam-jperyam@timesuniononline.com
A cigarette sales tax increase and high fuel prices are not keeping smokers from purchasing cigarettes at local businesses.
Cigarette sales have dropped by nearly 18 percent in Indiana since last year's 44-cent-per-pack tax increase, and state officials are pushing efforts for an even greater decrease, according to Associated Press reports.State records show that in the first nine months after the cigarette tax went to 99.5 cents per pack July 1, there were 376 million packs sold in Indiana compared to about 457 million packs from July 2006 to March 2007.
Jerry Holderman, Low Bob's Discount Tobacco Store manager on Detroit Street, said the cigarette sales tax hike and fuel prices has not had an effect on his business.
He said he has seen an increase in customers purchasing tobacco to make roll-your-own cigarettes.
Holderman said the state cigarette sales numbers are misleading because they do not take into account roll-your-own cigarettes in the cigarette sales count.
He said it may be true statewide cigarette carton sales are down, but he has seen an increase in customers purchasing roll-your-own cigarettes since the tax hike took effect.
"Roll-your-own cigarette material purchases at the store have increased by 400 to 500 percent in the past year," Holderman said.
When the average cost of a carton of cigarettes is $35 per carton, he said, it is less expensive for customers to purchase roll-your-own materials.
By rolling their own cigarettes, customers are getting three cartons worth compared to spending $35 for one carton of cigarettes. He said it costs $10 for customers to purchase roll-your-own materials.
"People may come in fewer times than before to purchase cigarettes, but when they do they are purchasing more cigarettes at a time," Holderman said.
Scott Parker, 22, Warsaw, purchased a pack of cigarettes Wednesday afternoon at Low Bob's Discount Tobacco Store. He said he is purchasing fewer cigarettes due to high gas prices.
"Instead of buying two packs of cigarettes a day, I only buy one pack a day now that gas prices are high," Parker said.
Cigarettes Plus Office Manager Evelyn Rake said the business on North Lake Street has not seen a decrease in cigarette sales despite high fuel costs.
She said, however, the store has seen a difference in the types of cigarettes people are purchasing and the number of times customers make trips to the store.
"We have seen a crossover in customers purchasing more roll-your-own cigarettes compared to cartons or packs of cigarettes," Rake said.
The store has seen a 12 to 15 percent increase in people purchasing roll-your-own cigarettes since January. She said she thinks it is attributed to high gas prices.
A carton of cigarettes at the store costs approximately $3.85 per pack, but the supplies to make roll-your-own cigarettes cost less than $1.
Penny Teeple, Cigarettes Plus employee, said she has seem customers who make fewer trips to purchase cigarettes, but purchase larger quantities of cigarettes when they visit the store.
"We still have the regulars who come in once a day to purchase one or two packs, or have people get two to four cartons a month," Teeple said.
Catherine Hatten, Warsaw, purchased three packs of cigarettes Wednesday afternoon at Cigarettes Plus.
"I try to stock up on cigarettes and make fewer trips when I purchase them," Hatten said.
Chelsea Gochenour, employee of Rich on Center Street, said she has noticed customers have turned to purchasing more off-brand cigarettes compared to name- brand cigarettes.
Debbie Oswalt, who lives in Pierceton but works in Warsaw, said she still purchases a pack of cigarettes a day, but is more aware of purchasing cigarettes when she is in town. She purchased cigarettes at Rich Wednesday afternoon.
"The change now is that I get the cigarettes before or after work when I am in town, and don't come back to Warsaw for shopping or to buy cigarettes at night like I used to," Oswalt said.
