Rhode Island Lawmaker Proposes Cigarette Tax Decrease

The state representative maintains that lowering the cigarette excise tax would help convenience stores compete with neighboring states.

February 21, 2012

PROVIDENCE, RI - In the face of a spate of other states looking to generate revenue by raising their cigarette excise taxes, Rhode Island state Rep. Robert Phillips introduced legislation last week that would lower the state??s cigarette tax by $1 per pack, the Boston Globe reports.

The bill is similar to a failed proposal he introduced last year, and while the per-pack tax would generate less state revenue, he maintains the competitive price would increase sales, especially in border communities.

"I know we??re in a constant state of worry over trying to find more money, but critics of this bill who say decreasing the cigarette tax will have a negative effect on state revenues have a very short-sighted view of how this could help us," he said. "We need to think smart about handling our cigarette tax??we live in a small state??It??s easy to drive over the border into Massachusetts and Connecticut even if you??re not living in a border community."

Phillips and state Rep. John Edwards, a supporter of the bill, say that if state consumers are lured back into local convenience stores to buy cigarettes, they are likely to purchase other items, too.

"What it translates into is more money for Rhode Island," Edwards said. "I live in a border community as well, and I honestly believe the cigarette tax in its present form is dangerous to our local businesses. The economy isn??t booming right now, so our small businesses are struggling as it is. We need to stay competitive. Vendors in my community often say that people will come into their stores to buy a pack of cigarettes and leave with newspapers, candy or other items, too."

Rhode Island??s cigarette tax has been $3.46 since 2009. The cigarette tax is $2.51 in neighboring Massachusetts and $3.40 in Connecticut.

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