WICHITA, Kansas -- The state taxation committee may vote Thursday on whether to recommend an increase in the tobacco tax.
The tax includes a $.55 tax on a pack of cigarettes but also a hefty tax on cigars.
The Humidor, cigar shop and lounge in west Wichita just opened up in November but owner Jason Webster fears an increase in the tobacco tax may force his entire investment to go up in smoke.
"With the way they have it written right now we would be gone there's no way to stay in business if this goes through," said Webster.
The bill would raise the tax on cigars from 10% to 40% enough to force even loyal customers like Joe Rulo to take his business to the internet.
"I would rather not do that, I would rather support my local businesses," said Rulo.
In addition in July, store owners would have to pay a 30% tax on the retail price of every cigar in stock. For Webster, that would mean writing a check for tens of thousands of dollars.
"We can't pass that through to the customers,” said Webster. “They won't pay it. They'll go on line. The state will lose all of the revenue instead of just a portion."
Still the state estimates the tax could raise $69.5 million for the state's strapped budget.
And health advocates argue a tax would reduce smoking rates especially among teenagers.
"When you increase the tobacco tax you increase the chances that someone will quit smoking or simply won't pick up a pack of cigarettes because they can't afford it," said Diane Tinker of the American Lung Association.
She says the tax would save healthcare costs as well.
But business owners like Webster argue customers will only go somewhere else, killing his business and further sickening the Kansas economy.
Webster has sent out a mass e-mail urging all of his customers to contact their lawmakers and voice their concerns.
