Cigarette sales in Michigan are on track for the largest decline in more than 30 years, following a $2-a-pack state tobacco tax that went into effect a year ago this week.

Sales plunged about 19 percent between August and January, according to Orzechowski & Walker, a Virginia research firm backed by the tobacco industry.

If the numbers hold, the drop will exceed the state's previous largest decline since the 1970s: 11 percent in 2003. That followed a tax hike that went from 75 cents per pack to $1.25.

The latest increase has been a boost to the state budget, averaging an extra $24 million a month, according to treasury figures. But it has been a financial strain for smokers and cigarette sellers.

02 July 2005

Author: Chris Knape Gazette News Service