Tobacco users facing sharp tax hike

Effective April 1, the price of a pack of cigarettes will increase 62 cents, and part of the money will be used to fund a children’s health insurance mandate.

By TEDDYE SNELL

TAHLEQUAH DAILY PRESS — The old adage “smoke ‘em if you got ‘em” may take on a whole new meaning after April 1.

A new federal tax will go into effect soon, increasing the cost of a package of cigarettes by 62 cents.

Locally, smokers pay anywhere between $3.15 and $5.05 per pack at grocery and convenience stores, and slightly less – about 15 to 20 cents per pack – at tribal smoke shops.

After April 1, those paying top prices will be paying $5.67 for 20, class-A cigarettes, or 28 cents a smoke.

The state tax on cigarettes in Oklahoma is $1.03, and with the federal increase moving from 39 cents per pack to $1.01 per pack, the total tax will be $2.04. According to a report by the Associated Press, tribal smoke shops are not exempt from the federal tax; only state taxes can be avoided by smoke shop customers.

Despite the steep hike, local resident June Ludwig doesn’t believe the increase will convince people to quit.

“[The higher tax] won’t help [people quit],” said Ludwig. “People who want to smoke will smoke. If it were a price issue, people would have quit several years ago when prices skyrocketed.”

Kevin Edmondson believes the opposite – that some smokers and tobacco users may use the increased price as a catalyst to quit.

“I do think some people will refuse to pay that much,” he said. “It’s the biggest price increase I’ve ever seen on tobacco products to happen all at once.”

Ludwig thinks some people will choose to go without other things before trying to kick the habit.

“I see people maybe waiting to buy a new pair of shoes to save money to pay for tobacco,” she said. “Worse yet, theft of cigarettes is liable to increase.”

During the exchange, Ludwig wondered about people growing their own tobacco for personal consumption.

“Maybe people will just start growing their own tobacco in gardens,” she said. “That’s it! Forget our regular garden; Lud [June’s husband] and I are growing tobacco!”

Edmondson intervened, saying he didn’t think you could get seeds.

“I think they’re government-controlled,” he said.

A quick search of the Internet shows myriad Web sites offering tobacco seeds. But the legal issues are a bit more complicated.

A search showed it may be legal to grow your own tobacco in the United Kingdom, but little information was available about “growing your own” in the United States.

When Ludwig learned the additional tax would be spent on children’s health insurance, she was relieved.

“I was going to say, if they were going to spend the money on the bailout, then forget it,” she said. “Now that I know it’s for SCHIP, it’s not even an argument.”

Linda Axley, director of the Cherokee County Health Department, believes the tax will be an added deterrent.

“This is another good step in preventing youth from even starting to smoke,” she said. “And a deterrent for those who already do.”

Axley indicated Cherokee County offers numerous opportunities to help people quit smoking and other to not start.

“There are many activities here,” she said. “All of them are aimed at raising public awareness about the health problems [smoking creates] for all of us. [These activities] give people information about where to go for cessation classes in the Tahlequah area, and youth-oriented prevention activities.”

Jolie Person, program coordinator for the Cherokee County Communities of Excellence Tobacco Control Program, agrees with Axley, saying price increases invariably effect smoking.

“Increasing the price of tobacco is one of the most effective ways to reduce tobacco use,” said Person. “It has been proved to prevent kids from starting to use tobacco products; experts are estimating that this new tax increase will result in two million fewer kids starting, and help more than one million adult smokers quit. This increase is going to result in an incredible savings on health-care costs.”

Person said the Cherokee Nation offers smoking cessation classes, and they are available to everyone, regardless of tribal affiliation. Also, the Oklahoma Tobacco Helpline – (800) QUIT NOW – is a free service.

“Our office will also assist schools, churches and businesses in setting up cessation programs for their employees, staff, faculty and students at no cost,” said Person. “I have talked with lots of people who have used both the classes and the telephone help line to quit, and I am convinced these are wonderful tools to help someone quit.”

Person remembers one woman in particular who quit and remains smoke-free two years later.

“She’s now working on becoming trained so she can help others in the community by teaching the Quit Smoking classes,” said Person. “It does make a big difference when you can talk about your difficulties in quitting smoking with other people who are experiencing the same things. Everyone is moving toward the same goal and to help motivate each other.”

Todd Poor, clerk at Willy and Billy’s Tobacco Shack on the north side of town, worries the tax may cost him his job.

“I really don’t think everyone will quit,” said Poor. “But it may hurt business enough that Billy Bob [Dougherty, co-owner] will have to go back to working the shop by himself, and let employees like me go.”

Signs stating “Major price increase in April – stock up!” are posted throughout the shop, along with a breakdown of what types of items will increase.

“All tobacco products are going to go up, across the board,” said Poor. “Cigarettes are going up [62] cents per pack, but they’re really sticking it to those who buy loose tobacco and roll their own.”

Poor provided a copy of price increases distributed by the American Wholesale Marketers Association. According to their figures, the current tax on roll-your-own loose tobacco is $1.10, but will increase to $24.62, or 2,138 percent.

A female customer pulling through the drive-through at Willy and Billy’s placed her order: two cartons of cigarettes, different brands. Evidently, the cost of one of the brand had been reduced.

“Wow, I’m glad to see the price went down on those,” she said to Poor.

Poor let the customer know she’d better stock up now.

“[That price is effective] just until April,” he said. “Then they’ll cost you $6.10 more per carton due to the new federal tax.”

Amanda Lamberson smokes, but she has two incentives to quit now.

“I’m getting a new car when I get my income tax [refund] back,” she said. “I’m going to quit, because I don’t want my new car to smell like smoke. Now that the prices are going up, that will help me make that decision.”