CONCORD – Beginning August 1, New Hampshire’s tobacco tax will be increasing, the result of a drop in state tobacco tax revenue, the Associated Press reports.

Two years ago, New Hampshire’s Legislature reduced the tax, arguing it would lead to higher tobacco sales, especially along the borders where the tobacco tax rates are higher. The law stipulated that the tax would automatically revert back to the old rate if tax receipts for 2012 and 2013 were below those for 2010 and 2011. And a report earlier this week revealed the state generated $56 million less over the last two years in tobacco revenue.

Accordingly, the tax on a pack of cigarettes increases a dime to $1.78, while the rate on other products, except premium cigars, will be set at 65% of the wholesale sales price.