Oct. 06, 2003 - ATLANTA - On July 1, smoking cigarettes in Georgia became more expensive by a quarter per pack.
That's caused some grumbling among Georgia smokers. But some cost-conscious shoppers have gone to the Internet for cheaper prices.
"Business dropped off for a while and it caused a lot of complaining," Cindy Wilkinson, co-manager of Tobacco Place on Jefferson Street in Dublin, said of the increased tax. "But people are going to smoke regardless, and a lot of people said they can get them a lot cheaper off the Internet."
Online cigarette dealers operate on the same rules as any other mail-order service: If the company selling the product isn't based in Georgia, the customer doesn't have to pay Georgia taxes, said Dennis Rich of the Georgia Department of Revenue.
That means a 10-pack carton of cigarettes bought online will cost $3.70 less than a carton bought in a Georgia store. Some sites charge shipping and handling, others don't.
To raise money during the state's a budget crunch, Georgia increased the excise tax on cigarettes this year to 37 cents a pack, up from 12 cents. Until then, Georgia's tobacco tax had been one of the lowest in the United States, so there was little reason for Georgia smokers to purchase cigarettes online and avoid the tax, Rich said.
But now, Rich expects more Georgians to buy cigarettes through the Internet.
Many states have seen a spike in Internet sales shortly after an increase in tobacco taxes, said Ali Davoudi, president of eSmokes.com and the Online Tobacco Retailers Association. It's too early to determine whether that is happening in Georgia, he said.
About 400 tobacco sellers currently are operating on the Internet, said Davoudi. They have names like Dirtcheapcigs.com and
Silvercloudsmokeshop.com. Many, such as the Alllegany Indian Reservation's Redjackettobacco.com, are operated by federally recognized American Indian tribes.