You askede: Cigarette tax has brought in over $600K
How much revenue has the town’s cigarette tax brought in?
Farmville’s 2013 decision to implement a tax on cigarettes has netted over $600,000 in revenue for the town.
According to Farmville Treasurer Carol Anne Seal, from July 2015 to January 2016, $129,750 has been collected in revenue from the tax.
From the implementation of the cigarette tax in October 2013, $250,082.75 was netted in revenue for the town through June 2014, Seal said.
From July 2014-June 2015, the tax brought in a total of $231,780.
“It all depends on supply and demand,” Seal said. “It’s been staying pretty steady.”
When the town cigarette tax was first introduced, Seal said, the town sent letters in July 2013 to all retail stores and any location that sold packaged cigarettes to allow time for the transition.
She said for the bigger stores, revenue began to come in before October. However, for smaller locations that sold cigarettes, self-adhesive tax stamps were offered from the town.
According to the town’s cigarette tax ordinance, “the tax is to be paid by the seller, local dealer or other agent by affixing a stamp, or causing a stamp to be affixed to every package of cigarettes, in the kind and manner required in this article and at the applicable rate as follows: the rate or amount of tax levied or imposed on cigarettes shall be at the rate of 27 cents for each 20 cigarettes or fractional part thereof.”
Farmville Town Manager Gerald Spates said 25 cents of the tax goes to the town and 2 cents goes to the seller or business.
“Most localities were charging and we weren’t,” Spates said.
He said instead of raising the real estate tax, a cigarette tax was imposed by the town council.