Pam Dudding Contributing writer
With many prices having escalated in the last year, including gasoline and groceries, cigarettes have now also been taxed in Craig County.
For years, no such tax existed. As some neighboring counties have already assessed, Craig remained one of the area localities that held off the “inevitable.”
In July 2021, the Board of Supervisors (BOS) voted to pose a 40 cents per pack tax on cigarettes.
This caused a concern in the community, not only by the people who purchase the cigarettes, but by the businesses who sell them, as their fear it will take away many other convenient purchases. This in turn will decrease their revenue, affecting their abilities to keep employees or having the means to pay competitive wages.
At the January BOS meeting, it was revealed that the reasoning for the tax was to provide enough tax base to pay for two additional EMS workers.
Many in Craig County know that these positions have been difficult to keep filled due to competitive salaries in nearby counties. It remains a great concern.
Still, the questions remain, “Why such a drastic increase?” and “Why wasn’t this drastic change made more public?”
BOS County Administrator Dan Collins shared, “We placed it on the county website, at the courthouse and in the newspaper in July 2021 when the proposition was made.”
The Carper family, who own the Gopher Market and IGA Express Exxon, presented a written petition with the Board with 492 names on it.
The statement made was that most of those 492 people do not get on the county website nor enter the courthouse (unless paying taxes or have a court date) or purchase the New Castle Record to read the notices.
Concerned citizens asked why it wasn’t shared in more public places, being as it impacts so many citizens, especially the revenue of small businesses who struggle to keep employees.
A business owner pointed out that there was not a notice placed elsewhere in the county last year or for previous meetings on this subject until the January Board meeting, where one was placed on the Food Country community notice board. This was said to have been a great avenue of communication to the people who smoke and to the community in general who wish to be a part of this major decision that impacts some many businesses and citizens. Even more attended the meeting.
As of January 19, the Carpers revealed, “We are disappointed in the BOS decision to not reduce the cigarette tax. Already, we have had a 15 percent decline in cigarette sales at both locations. This will get worse as customers find a cheaper price.”
They added, “Also, it affects all sales when customers find another location to purchase their taxed cigarettes and additional commodities. These notices should have been placed on our stores and in other more noticed places.”
Many customers find it more convenient to purchase their drinks, lottery tickets, fast food, and gasoline as they pick up their cigarettes for the day or week.
Unfortunately, David Stephens, store manager at Food Country has also seen a drop in sales. “Many of my cigarette shelves are empty as people are no longer buying here so I am not ordering,” he said.
“People are going to Roanoke and Salem because it’s cheaper,” Stephens stated. “I thought the suggestion of $2.00 per carton was a much better option. They will revisit in a year, which the Board of Supervisors suggested is not going to do anything, because by then, the damage is done. We are fighting to keep everyone shopping in New Castle.”
Stephens added, “I think the meetings and other notices should be put on our community bulletin board in front of the store. Everyone already stops and reads the flyers. It would help with getting people to the meetings. We are fighting to keep the business in town and hoping people will continue to shop local.”
Other places that the notices would have been seen are gas stations and bank windows; places people frequent weekly.
Most agree that suggestions such as to decrease the cigarette tax less than our neighboring counties is a better idea so then other counties would buy in Craig instead of citizens looking to other counties, therefore increasing the revenue instead of decreasing it and putting local businesses in jeopardy.
“Right now, the tax is driving business out of the county and is hurting our local businesses,” Stephens stated. “Again, we have a huge bulleting board when you walk in the store, and anyone is welcome to post on it.”
