Independent Operators Would Bear Brunt of Kansas Tax Hike Proposals

The state convenience store association says that the tobacco, liquor, fuel and sales tax options before the legislature would adversely affect convenience stores.

March 15, 2010

TOPEKA, Kan. - The Kansas legislature is considering a slew of tax hikes to fill the state??s projected $400 million deficit, and every one of them would harm convenience stores, said Tom Palace, executive director of the Petroleum Marketers and Convenience Store Association of Kansas.

The state Senate and House are looking at bills that would raise taxes on cigarettes, liquor and fuel, as well as increase the state sales tax, the Kansas Reporter reports.

Palace testified last week before the Kansas Senate Assessment and Taxation committee hearing about how his members would feel the impact of such increases. "These taxes are all targeted and they all impact convenience stores," he said.

Specifically harmful to convenience stores is Gov. Mark Parkinson??s bill to hike the sales tax on cigarettes from 79 cents a pack to $1.34, with cigars and other tobacco product taxes rising 30 percent to 40 percent at the wholesale level. About a dozen others also spoke against the proposal, including Kendall Culbertson, owner of Outlaw Cigar Company.

"If this bill passes there??s no way I can stay open," said Culbertson, adding that his customers will simply cross over into Missouri with its 17 cents per pack cigarette tax to buy tobacco products.

If Kansas jacks up its cigarette tax more, convenience stores along the state border will be in trouble. "The cross-border sales are a real thing," Palace said.

Meanwhile, Parkinson signed the state??s indoor smoking ban into law on Friday. "The journey of passing a statewide public smoking ban has been long and hard, but today we are able to cross the finish line knowing that we have built a better future for generations to come," he said during the signing ceremony.

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