Lately, sales at Georgia Cigar and Tobacco in Newnan have been white hot.
Still, owner Bill Clowers feels he's getting burned.
His regular customers know now is the time to buy. On April 1st, a box of cigars at Clowers store will cost an additional twenty-dollars.
It's not Clowers' idea. A new federal tax is coming, and Bill Clowers is afraid it will turn much of his business into cold ash.
"I'll have a thirty percent drop off after April 1st," says Clowers. "That's a lot of livelihood for a small retailer like myself."
The new tax will add an extra 62-cents to a pack of cigarettes. It will mean an additional 6-dollars and 20-cents to a ten pack carton. It will add a dollar and 72-cents to a pound of pipe tobacco.
In Georgia, the money will go to PeachCare, a program that provides health care to children of the uninsured. The program has faced it's financial struggles. In 2007, it was a 130-million dollar shortfall in funding from the federal government.
Health experts predict the federal tax increase on tobacco will cause as many as a million people to stop smoking.
Bill Clowers insists many of his customers will turn to the internet. He says that's where you can often buy tobacco products and avoid taxes altogether.
"They don't even have to use this tax if they'd just tax the internet," says Clowers. "Over half of the cigars bought in Georgia are bought over the internet, mail order, and they're not taxed."
You Might Be Interested In