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Cigarette Sales Down Since Tax Hike

Florida figures show a 28 percent drop, while Georgia's state line has seen brisk sales

Monday, Sep 7, 2009 | Updated 10:45 AM EDT

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Pricey cigs are driving smokers across state lines.

Florida's higher cigarette tax appears to have sent sales downward and prompted some buyers to cross state lines.

The latest state figures show a 28 percent drop in the sale of cigarette packs in July versus the same month a year earlier. From June to July, sales were sales were down 17 percent.

Florida's previous 34-cents-a-pack cigarette tax was among the nation's lowest. It went up to $1.34 July 1.

Sellers across the state line in Georgia are reporting brisk sales. A trade group representing state gas stations and convenience stores says those retailers have taken a hit and layoffs linked to the tax hike are inevitable.