Additional 27 Cent Cigarette Tax Begins October, Estimated $150,000 Gains for Fiscal Year in Farmville

Starting Oct. 1, cigarette cartons will be taxed an additional 27 cents with stamps applied to cigarette cartons to reflect the change.

All businesses must replace the brands of cigarettes that sell out during the month of September with the applied tax stamps before being sold, according to the Town of Farmville website.

The current federal cigarette tax per carton is $1.01, while the current state tax per carton is $0.30, according to the Tobacco- Free Kids website.

The cigarette tax rate of 27 cents per 20 pack of cigarettes adds to the Town Budget. The Town Budget includes the real estate tax of 12 cents per $100 of assessed value and the personal property taxes for businesses of $1.50 per $100 of assessed value.

Carol Anne Seal, treasurer of the Farmville Town Council, estimated a $150,000 gain for the first fiscal year with the cigarette 

tax.

According to the Farmville Town Council minutes for Aug. 14, Dr. Edward Gordon, Ward A council member, suggested that the Finance Committee should begin discussion on possible other revenue sources as well.

The stamps that will be applied on the cigarette cartons are capable of being bought as either self- adhesive or heat applied.

For cigarette vendors, there is a mailing fee of $14 per roll or $6 per sheet.

Self-adhesive stamps are only sold in sheets of 100, and heat applied stamps are only sold in rolls of 15,000, according to the Cigarette Stamps Order Form.

To receive the cigarette tax stamps, cigarette vendors must sign a Monthly Cigarette Distribution Form by the 20th of each month to be sent to the Treasurer’s Office along with a Cigarette Tax Stamps Order form, a Cigarette Distributors Form and a Retail Additions and Deletions Form.

Mickey is a small business owner who owns a tobacco shop in the Town of Farmville, called Mickey’s Shop. Mickey’s Shop has been in business since 2004 and is located 

at 300 N. South Street in Farmville, Va.

Mickey commented on the tax, saying, “This is really too much.”

He added, “It’s going to be hard for a smoker to pay 25 cents extra for the town tax for each carton ... If it’s 10 cents or 15 or maybe more, easy, but now people are going to go out of the county or out of the Town to get some cigarettes, so it really hurt businesses, especially a small business like us.”

Mickey predicted that people won’t notice the cigarette tax stamps within the first two or three weeks of October. 

Mickey expects that the residents of Farmville may travel outside of the town to buycigarettes or make their own cigarettes, whichmay causeMickey to have to raise the prices of his cigarettes to keep up

revenue. “It’s very hard 

right now for everybody, and the Town is trying to get some money, and some people here don’t have work and are always smoking,” Mickey said.

Mickey commented on the efficacy of a cigarette tax possibly convincing smokers to quit their addiction, saying, “People are going to smoke anyway ... It might make them go somewhere else for a cigarette.”