Equal Time: Tobacco tax increase will unfairly hurt storekeepers

Just when you thought the poll tax was a historical remnant, it may yet reappear. No, not in its original version, but a new one under the guise of a whopping increase in Georgia’s tobacco tax.

The reason? It appears that all of the tax proposals that would have included the majority of Georgians are dead for this session. They apparently polled badly when trial balloons were floated to the public recently.

But wait! We have the smokers, the same folks who just funded the federal children’s health program to the tune of 62 cents per pack, for a program whose benefits will actually be received by a majority of nonsmokers. Proponents roll out polls that show that 80 percent of the people favor a tax where only 20 percent (not them) will pay the freight. Is anyone surprised?

The money from this tax will go directly into the state general fund, which means it will be used for everyone’s benefit. But here’s a question: When the projected revenue falls short — which it will, as more people go to either the Internet or neighboring states to purchase tobacco — which minority of citizens can we hit next for revenue? Maybe we need to do another poll.

It might be a surprise, however, to learn that when you combine the current excise and sales taxes on tobacco, along with the settlement payments from the cigarette manufacturers, the total revenue received last year in Georgia from this already heavily taxed group totaled more than $459 million.

Speaking of our neighboring states, the potential damage to Georgia retailers is real. Tax policy cannot be made in a vacuum. Geographical borders are not tax borders when the differences across the line are as significant as those being proposed.

Tobacco sales comprise up to 40 percent of inside sales for many small retailers, who have a right to be concerned about any tax proposal that would put them at a great disadvantage to similar stores just across the border.

Georgia has significant population centers along the borders with Savannah, Augusta and Columbus. Retailers in Savannah and Augusta would face a $13 per carton price disadvantage and Columbus retailers would have to compete with retailers just across the river pricing their cartons $9.45 less. In today’s tight economy, where people have been known to drive miles to save 5 cents a gallon on gas, are we to think they are not going travel to purchase tobacco?

For them, “Pass the buck” simply means pass Georgia businesses on the way to the border. Georgia would by far have the highest tobacco taxes in the Southeast, with Georgians paying 75 cents per pack more than in Tennessee, 95 cents more than Alabama, $1.02 more than North Carolina, $1.03 more than Florida and $1.30 more than South Carolina.

Georgia retailers have invested in our state, created thousands of jobs and paid taxes. They are not asking for a bailout, just a fair and reasonable tax policy on products that are a major source of their ability to continue in business.

As retailers we are simply trying to compete for sales of a legal product. We do not want to be “collateral damage” of a policy that is implemented simply because it is the path of least resistance.

• Jim Tudor is president of the Georgia Association of Convenience Stores.