But it may benefit R.I. businesses on the border

By SANDY McGEE

For years, Rhode Island smokers took a quick trip across the state line into Massachusetts for a lower price on cigarettes. Now, after the Bay State increased its cigarette tax by $1 on July 1, smokers from both states are turning elsewhere and to the Internet for a cheaper addiction.

On July 1, Gov. Deval Patrick signed into law a bill that increased the state’s tax for cigarettes by $1, making Massachusetts’ tax one of the highest in the country. The increase, which brought the state’s cigarette tax to $2.51 per pack, went into effect immediately.
Only a week after the increase was implemented, cigarette smokers say they will shop elsewhere instead of quitting.
Richard Ravenelle of Blackstone, who has smoked for the past 40 years, said the increase would not deter him from lighting up.
“I’m going to start buying them online,” said Ravenelle, who purchased a pack of cigarettes on Tuesday at the White Hen Pantry on Main Street in Blackstone, nearly a mile from the state line.
“I don’t go to Massachusetts anymore (to purchase cigarettes),” said Robert Paul of Woonsocket, who has smoked for the past 25 years. “I used to come here all the time, but not anymore.”
Supporters of the bill estimate that the tax increase will raise an additional $174 million in state revenues and will convince smokers to stop the unhealthy habit. Opponents of the bill said the move would hurt small businesses in the state located near the borders of New Hampshire and Rhode Island.
“It (the increase) sucks,” said consumer Jimmy Pennett of Bellingham, who has smoked for 14 years. “I should quit, but I’ll probably go to Rhode Island or New Hampshire instead. Yet again, gas prices suck, too.”
Rhode Island’s cigarette tax, $2.46 per pack, is lower than Massachusetts, but still remains one of the highest in the country. State officials in New Hampshire are also discussing raising its’ cigarette tax from the current amount of $1.08 per pack to $1.33 in October if revenues do not improve.
New York remains the highest state in the country for its cigarette tax at $2.75 per pack, while South Carolina charges the lowest tax at seven cents per pack.
“There’s been a lot of people complaining about it (the tax),” said Jessica Campano of Bellingham, an employee of the Li’l General store, located at 61 South Main St., Bellingham.
While employees at White Hen Pantry and Li’l General, both in Massachusetts, said it was too early to tell if the increase would impact businesses close to the state’s border like theirs, employees of nearby stores in Rhode Island said business was booming.
“It’s bringing down the business in Massachusetts and we (in Rhode Island) are picking up,” said Brian Giguere, a cigarette smoker and employee of A.J.’s Mini Mart on Social Street in Woonsocket, less than one mile from the state line.
According to Giguere, the company’s second store, A.J.’s Mini Market on Pulaski Boulevard in Bellingham, has seen a decline in business, while theirs has seen an increase.
“They (customers) are all coming back here (to Rhode Island),” Giguere said.
“People are complaining,” said Yassine Nasser of Cranston, also an employee of A.J.’s Mini Mart. “We have a lot of customers now coming from Massachusetts.”
Steve Gurwitz of East Greenwich, owner of the Hilltop Farms convenience store on Pulaski Boulevard in Bellingham, less than a mile from the state line, disagreed Tuesday, saying the increase has not affected sales.
“We had a very good week (for sales),” Gurwitz said. “Not all of the stores in Rhode Island have the special discounts. The stores in Rhode Island without the discounts are still more expensive.
“We haven’t noticed an impact, thankfully. The price tax has been a seesaw over the last years. The price goes up, then goes down.
“I was concerned at first, because you don’t know what the repercussions will be. Our loyal customers, who have been shopping here for years, are still coming back.”
Hilltop Farms, which was founded by Gurwitz’s grandfather, has been in operation at the Pulaski Boulevard location for 53 years.

- With reports from the Associated Press