COLUMBIA, S.C. - Yesterday, South Carolina Gov. Mark Sanford vetoed legislation that would have raised the state??s cigarette tax by 50 cents a pack, the Associated Press reports. Sanford said he declined to sign the bill because there was no offsetting tax decrease.

"We have consistently said we would absolutely support the cigarette tax as long as there was a concurrent tax cut with it," said Sanford. "In these economic times will we destroy or hurt the economy more or less if we add a fairly significant tax increase? It??s our view that we would hurt the economy."

Sanford rallied support for this veto, his second on a cigarette tax increase in as many years, by asking House members and a top convenience store retailer to his office before vetoing the bill. Lawmakers will take the fight back to the House, where some feel legislators may override the veto because they want the issue settled.

Those in favor of a cigarette tax hike say the bill would bring in close to $125 million for the state??s Medicaid programs. However, South Carolina retailers would suffer because of loss of customers to North Carolina and Georgia, which would have lower cigarette taxes after the increase, said David Jordan, president of the South Carolina Association of Convenience Store and marketing director for R.L. Jordan Oil Company of NC Inc.

Jordan is asking lawmakers to let the veto stand because the "jobs of my employees, myself, my small company are at risk...We don??t need [to send] South Carolina dollars over into North Carolina and Georgia."

Today, the cigarette tax battle continues in the House to see if there??s enough votes to overcome the veto. South Carolina currently taxes cigarettes at 7 cents per pack and has not raised that rate since 1977. The state has the lowest cigarette tax in the country.