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Franchot: Cigarettes Pack Sales Down 23% to 35%

Unfree State

Gov. Martin O’Malley’s recently passed $1 a pack tax on cigarettes is driving down the sale of cigarettes by the pack, according to a letter sent this month to O’Malley and state legislative leaders by Comptroller Peter Franchot.

“Pack sales have declined 23% to 35% each month since the tax was enacted, well in excess of the estimated impact on sales of the $1 per tax increase,” Franchot wrote.

This is more bad news for Maryland taxpayers, who will have to make up the slack in the revenue gap. Apparently, the new tax is motivating Marylanders to buy their cigarettes elsewhere in Virgina, Delaware or online — as was predicted by opponents of this tax!

Crossposted on

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