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Cigarette Taxes NCWhy Do Cigarettes Cost So Much?: The increase in cigarette prices in recent years is due mainly to two things: (1) high state cigarette taxes and (2) the multibillion dollar tobacco settlement against the major cigarette manufacturers. Due to a myriad of taxes, a carton can cost $80 in California. You can still find cheap prices if you are willing to buy brands from retailers based on Native American lands.  We are exempt from all state taxing agencies because we are based on a Sovereign Native American Territory. We are 100% committed to protecting and safeguarding your personal privacy.

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North Carolina Raises Cigarette Taxes
North Carolina Cigarette TaxesGov. Mike Easley's proposal to increase cigarette taxes by 35 cents a pack drew condemnation from Greensboro's Lorillard Tobacco Co. (NYSE: CG).

"It is unfortunate that Governor Easley has looked to balance the state's budget on the backs of smokers -- many of whom can ill afford to pay the astronomical increase," said Steve Watson, Lorillard's vice president for external affairs, in a written statement. "At the same time, when our state should be looking for ways to increase jobs and make our business environment more competitive, this proposal will only cost the state jobs and give cheap foreign discount cigarette manufacturers a significant advantage." . . .

A poll of N.C. voters by Elon University last week found 63 percent of the state's voters favor a cigarette tax increase.

One of the hottest topics for state lawmakers this year is raising cigarette taxes. A study done two years ago by RTI International may shed some light on the debate.

The study concludes raising taxes on cigarettes decreases smoking, especially among young people.

It also finds that bumping the tax gives a huge boost to state revenue.

"In every case that a state raised the tax by 10 cents or more, revenue went way up, and if the state did not raise taxes, inflation made the revenue smaller," said Mathew Farrelly, who co-wrote the study.

The study also mentions when a cigarette tax hike goes into effect, part of the reason for the immediate drop in sales is because people hoard cigarettes before the increase or they buy them on the Internet or on the black market.

North Carolina is tobacco country, a place where the golden leaf is about both tradition and economics.

But even a long tobacco history may not be enough to prevent Gov. Mike Easley from raising the state's cigarette excise tax from 5 cents to 40 cents per pack in his 2006 budget, and another 10 cents in 2007.

The Democratic governor's proposal has sparked both support from health advocates who think the steeper prices will force adults to cut back and kids from getting hooked in the first place, and backlash from cigarette companies and tobacco retailers who have an economic interest in keeping prices down.

And those in-between like to cite that North Carolina has the second-lowest tax nationwide, trailed only by Kentucky's 3-cent tax. The highest is Rhode Island's $2.46 state tax.

Easley said his plan isn't just about health issues but making ends meet. Unlike the federal government, which is allowed to carry budget deficits from one fiscal year to the next, the states are required by law to balance budgets each fiscal year.

Easley said he is trying to close a budget shortfall of more than $1.3 billion for next fiscal year, and the cigarette tax increase would account for nearly half - about $454 million over the next two years. Under the current tax, North Carolina brought in $38.8 million during fiscal year 2003.

That still doesn't wash with smokers in Onslow and other counties who in general say they are against any price increase. Many said they are treated unfairly because of their lifestyle.

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