Cigarette tax one of many new laws

‘I think they are going to continue to pay, but not without a lot of grumbling and complaining,’ said Gregory Peevey, manager of the Arcade Smoke Shop in Nashville. ‘I don’t think smokers are going to cut back.’

Tennessee’s cigarette tax more than tripled today, from 20 to 62 cents to pay for a half-billion dollar plan to improve schools.

Since the tax hike was approved in June, retailers have been stocking up on cartons and individual packs in anticipation of a last-minute run on cheap cigarettes, said Jarron Springer, president of the Tennessee Grocers and Convenience Store Association.

‘I know retailers were ordering product immediately after and trying to get as much in as possible, because they knew they were going to see an increase in sales,’ Springer said.

Smoke & Save cashier James Alrwza said they had trouble restocking the shelves at the Nashville tobacco store.

‘We’re out of lot of stuff because we can’t get anymore,’ he said Friday. ‘Everybody is out.’

But retailers are more worried than thrilled about the short-term sales increase, said Springer. Smokers will just turn to cheaper alternatives instead of quitting and cut into retailers’ profit margin, he said.

‘Tennessee’s tax is still going to be below the national average, but it will be the highest in the Southeast,’ Springer said. ‘Their customers are still going to smoke, but the customers are going to go elsewhere.’

The Arcade Smoke Shop makes most of its profit from more expensive items like cigars and pipe tobacco, but cigarette smokers bring in foot traffic, said Peevey.

Springer is concerned that in cities like Memphis, Chattanooga and Clarksville that are close other state borders, customers will take the extra time and effort to purchase cigarettes out-of-state.

‘I suspect Kentucky retailers are going to see a 15-25 percent increase in cigarette sales,’ Springer said.

But smokers cannot bring more than two cartons of cigarettes into the state, said Sara Jo Houghland, a spokeswoman for the Tennessee Department of Revenue.

Last fiscal year the state collected $125 million in cigarette taxes.

‘This year we’re expecting $220 million and this does account for a reduction in smokers,’ Houghland said.

Peevey, a smoker himself, said the tax increase and the smoking ban in one year was a surprise to him.

‘You’re victimizing one section of the population so that another section benefits,’ Peevey said. ‘It doesn’t make any sense to me. I never thought this state would do what it has done.’

New laws

Some new state laws that take effect in Tennessee today:

‘ CIGARETTE TAX. Raises the state’s cigarette tax from 20 cents to 62 cents per pack.

‘ HELMET LAWS. Requires children to wear helmets while riding off-road vehicles.

‘ CHILD RAPE. Increases the prison sentence for child rapists from 15 years to 25 years.

‘ DRIVER CERTIFICATES. Eliminates a driving certificate program for non-U.S. citizens.

‘ BESTIALITY BILL. Makes sexual activity with an animal a felony.

‘ DISABLED PARKING. Increases the fine for unauthorized use of a parking spot reserved for disabled people.

‘ DNA DATABASE. Requires anyone arrested for a violent crime to give a DNA sample.

‘ DOG FIGHTS. Toughens penalties for dog fight spectators.

‘ DOG LIABILITY. Creates stricter liability for owner of a dog that injures someone.

‘ LAWMAKER FELONS. Bans elected officials convicted of a felony from ever seeking election again.

‘ LAWMAKER MAILINGS. Bans taxpayer-funded lawmaker mailings within 30 days of an election.

‘ PURCHASING FIREWORKS. Prohibits anyone under 16 from buying fireworks.

‘ WHEELIE BAN. Bans motorcycle wheelies.

And coming soon …

‘ SMOKING BAN. As of Oct. 1, smoking will be banned in most indoor workplaces, including restaurants.