Cigarette tax approved in Rocky Mount

Despite opposition at a public hearing last week, Rocky Mount Town Council voted Monday night to approve a cigarette tax of 10 cents per pack.

Town Manager James Ervin and Finance Director Linda Woody had recommended a tax of 20 cents per pack that they estimated would generate $250,000 a year in revenue.
But Councilman Jerry Greer said that he believes that a cigarette tax will generate more revenue than anticipated. He said a tax of 10 cents might generate close to $250,000.
"I think 20 cents is too much. Maybe we can do 10 cents now and then go back and look at it in six to eight months," Greer said.
Greer's motion for the 10-cent tax was approved on a 4-2 vote with council members Robert Strickler, Greg Walker, Ann Love and Greer voting for the tax.
The cigarette tax will take effect in July.
Council members Bobby Moyer and Bobby Cundiff dissented.
"If we need the money, then 20 cents,"ﾠMoyer said. "If we don't need the money, we don't need to fool with it."
Ervin said that town council could adjust the tax during the next fiscal year if it desires.
Last year, town council rejected a proposal for a cigarette tax of 10 cents per pack with Greer, Walker and Strickler voting against the proposal.
"It would be hard for me to support any new taxes" during these tough economic conditions, Walker said last year.
"We had 500 people opposed to the cigarette tax," said Greer, citing a petition that was submitted to town council last year.
"I can't support it (a cigarette tax) either," Strickler said last June.
At a public hearing last week, council members were told that a cigarette tax will cause stores to lose money and the town to lose tax revenues.
Johnny Singleton, who operates Riverside Minute Market, told council that customers would go outside the town to buy cigarettes to avoid the tax.
Singleton said that the customers would also buy groceries and other products when they go outside the town to buy cigarettes. They would also eat meals in restaurants outside the town, he said.
As a result, the town would lose sales tax revenues, meals taxes and other revenues, Singleton said.
Singleton said that the tax would be unfair because it would apply only to businesses that sell cigarettes -- not to all businesses and taxpayers
James Angell echoed Singleton's concerns about the tax's impact on stores and town tax revenues.
Angell, speaking for Jones Produce, said that customers would walk or drive a few hundred yards outside the town to avoid the cigarette tax.
"People will go elsewhere to avoid the tax and you will lose meals taxes and other taxes," Angell said.