Louisiana Retailers Worry Tobacco Tax Increase Will Drive Business Out of State

Posted: May 11, 2011 10:39 AM by Press Release

House Bill 63 by state Rep. Harold Ritchie, D-Bogalusa, raises the state tax on cigarettes to $1.06 per pack, a 194 percent increase. Under the new proposal, the average price per pack in Mississippi would be nearly 50 cents cheaper than in Louisiana.

According to Peter Zuppardo, president of Zuppardo's Supermarket in Metairie, the proposed tax hike would weaken the state's retail sector. "For most Louisianans, Mississippi is just a short drive away," Zuppardo said. "Consumers find the lowest prices and take their business there.

This legislation actively encourages Louisianans to spend their money in Mississippi." According to Zuppardo, the impact on sales will cut both ways. "Because of our low taxes, retailers in Louisiana have made money from Texans and Arkansans shopping here for a long time.

So we'll lose that revenue as well," he said. Zuppardo worries that this legislation will make it harder for Louisiana retailers to compete. "Without question, this tobacco tax would have a major impact. Local businesses are bracing themselves," he said. Citing Governor Jindal's pledge to veto any tax increases, Zuppardo added, "I'm not into political scorekeeping. But on this one, the Governor is right."