WBZ NEWSRADIO 1030 - NH delays 25 cent cigarette tax hike

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Posted: Thursday, 08 May 2008 4:52PM

NH delays 25 cent cigarette tax hike

D.H.

Concord, N.H. (AP) -- State budget writers in New Hampshire delay a 25 cent cigarette tax hike to see if a pending tax hike in neighboring Massachusetts will drive smokers north of the border.

If New Hampshire doesn't get 50 million dollars from cigarette sales between July 1st and October 1st, the state's $1.08 tax will go up a quarter.

New Hampshire's grocers and convenience stores had told the Finance Committee they could sell more packs without a tax hike.

Massachusetts is considering raising its $1.51 per pack tax by $1.

Massachusetts also has a 5 percent sales tax that New Hampshire retailers say makes that state's total price unattractive compared with New Hampshire's prices.

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