Cigarette, liquor taxes hiked
Kayla Webley
2005-05-18
The Daily
Gov. Christine Gregoire signed the “sin tax” bill yesterday, leaving local businesses and UW students reaching deeper into their pockets when they reach for cigarettes and liquor.
The law will raise the tax on a pack of cigarettes by 60 cents starting in July — an extra $175 million in revenue for the state in the next biennium. Additionally, the increase of $1.33 per liter of liquor will generate $50 million over the next two years.
While the excess revenue will aid the state’s tight budget, Nasim Choudhry, co-owner of University Smoke Shop on the Ave., glanced around the store he has owned for 11 years and said he may have to consider getting out of the tobacco business.
“The tobacco business is hurting already,” he said. “I know they are trying to get revenue out of tobacco, but they don’t understand they are hurting so many small businesses. It’s tough to survive and pay the bills. We are seriously thinking about starting some other type of business aside from tobacco.”
At the bill signing ceremony yesterday, Gregoire was unapologetic, saying the taxes won’t hurt the average citizen much and will produce a better state.
“We can stay stuck in the mud, we can be a second-rate state,” said Gregoire. “But you know what? I love my state. That’s not good enough for us.”
Choudhry said he doesn’t think smokers should bear the brunt of the budget battle.
“It is discriminating against smokers,” said Choudhry. “Only smokers are paying the deficit in the state’s budget, and that is total discrimination.”
The tax will force UW students who smoke to weigh the cost of smoking with their addiction.
“I don’t want to pay 60 cents more a pack,” said UW senior Jason Trimmer, a smoker. “It is unfair that they only target smokers in particular. Once they break $5, I have a harder time justifying the expenditure.”
Amjad Rey, a sales clerk at Sam’s Smokes on the Ave., said he thought in addition to hurting business, some smokers will switch from their specialty cigarettes to generic brands.
“Some people are going to quit, but mostly people will go to generic stuff — the cheap stuff,” said Rey. “I am worried about the loss of health. The generic brands are too bad for you. All cigarettes are bad, but the generic is worse.”
While smokers and smoke shops feel they will be greatly impacted, bars and liquor stores are confident the law will not seriously hurt their businesses.
“There will be an initial hit, but over the long haul … people aren’t going to stop drinking just because the tax went up,” said Jeff Andrew, part owner of Tommy’s Nightclub and Grill.
Andrew said the tax affects his ability to raise prices to compensate for inflation and force him to buy cheaper liquors for drinks.
“This will force me to look at low-end stuff,” said Andrew. “I won’t be able to carry high-end liquor as much. I will have to stick with generic Monarch-style [liquors] for wells and things of that nature.”
But Bob Burdick, communications director for the Washington State Liquor Control Board, said the liquor industry is not anticipating a loss due to the increase tax.
“We’re going to monitor the sales in our stores to see if there is an effect, but we don’t think there will be — we hope there isn’t,” said Burdick.
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