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To: SheLion
Total packs sold = 1,270,376,000

Sales taxes paid = packs sold multiplied by sales tax rate (7.25% or $.27 per pack).

Number of smokers (4,235,446)

From these numbers we can calculate that the average pack costs $3.60. And that, with sales tax, California smokers spent $4,916,355,120.00 on cigarettes, or almost $5 billion.

Dividing by the (estimated) number of smokers shows us that the average smoker spends $1,161 on cigarettes each year, inclusive of taxes.

FYI, purchasers of loose tobacco pay neither the settlement costs nor the excise tax, only the sales tax (on a lower priced product). Roll your own and avoid taxes!

11 posted on 08/01/2002 3:45:48 PM PDT by Looking for Diogenes
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To: Looking for Diogenes
FYI, purchasers of loose tobacco pay neither the settlement costs nor the excise tax, only the sales tax (on a lower priced product). Roll your own and avoid taxes!

Thanks so much! But for your information, I HAVE been rolling my own for over a year. I can roll a beautiful carton for UNDER $8.00. And the savings is mind-boggling!

And just the fact that our hard earned money isn't going into the state coffers anymore is SO sweet!! Thanks, Diogenes!!

12 posted on 08/01/2002 4:34:11 PM PDT by SheLion
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To: Looking for Diogenes; SheLion
FYI, purchasers of loose tobacco pay neither the settlement costs nor the excise tax, only the sales tax (on a lower priced product). Roll your own and avoid taxes!

I hate to be a wet blanket, but this is only partially correct.

There is actually an excise tax on loose tobacco - it's not a cigarette tax - it is an OTP (other tobacco product) tax. OTP taxes apply to loose cigarette tobacco, pipe tobacco, cigars, chewing tobacco and snuff.

I'm not sure how the fderal tax works on it - but the states calculate this tax as a percentage of the wholesale price, similar to aregular sales tax. They do work out to be much lower than the cigarette taxes all the way around.

I'm getting a niggling feeling up the back of my neck that those of us rolling our own and promoting the practice should start being a bit more circumspect about it. the same with promoting the internet option for those who choose not to make them.

WE all know how powerful this forum is - we know politicos read here on a regular basis - and we are all well aware of the anti-smoker faction that not only reads, but harrasses us here.

It's just something I've been thinking about, and something we all might want to think about as well. FReepmail is a wonderful alternative to get info to folks or to share email addy's!!!! (thank you JR!!!)

Just some thoughts ......................

13 posted on 08/01/2002 7:06:48 PM PDT by Gabz
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