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 Michigan, USA - Federal tobacco taxes are set to go into effect April 1. The biggest federal tax increase will hit roll-your-own tobacco, rising from $1.10 per pound to $24.78 per pound. Store-bought cigarette taxes will head from 39 cents per pack to $1.01 per pack. The state tax for store-bought cigarettes stands at $2 a pack.
Chaldean retailers that sell tobacco say customers are stocking up and driving demand. Stores that sell loose tobacco and cigarettes are clamoring to keep their inventory stocked. Unhappy store owner John Kallabat of Canopy Bottle & Gourmet Shoppe in Brighton wonders how sales will fare starting next month. His store sells cigars and cigarettes, but no roll-your-own tobacco.
"It seems like every time they decide to put a tax increase on something it's always beer, wine or liquor or tobacco, and that's our livelihood," Kallabat said.
Gov. Jennifer Granholm's budget wouldn't touch Michigan's $2-per-pack cigarette tax, it would slam other tobacco smokers, chewers and puffers who've been a favorite tax target for states to balance budgets and, in the name of good health, discourage tobacco use.
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