Warren County supervisors debate cigarette tax; ordinance defeated after votes

The Warren County Board of Supervisors debated a proposed ordinance to add Article 24 to Chapter 160 of the Warren County Code to impose a local cigarette tax during its Aug. 20 meeting. County finance staff presented a revenue estimate of about $524,524.80 based on a 40¢ per-pack tax, a county population benchmark of roughly 40,000 and an average packs-per-resident factor used by peer localities.

Finance staff said the estimate used a per-resident packs metric from a statewide county toolkit and comparable jurisdictions. "This is their benchmark," the presenter said, referencing the Virginia Association of Counties benchmark and a 32.14 average packs-per-resident metric.

Supervisors questioned the data and raised equity concerns. "I don't like imposing any more taxes than we have to," said one supervisor, who also noted property reappraisals are due next spring and urged caution about shifting burdens. Supervisor Doctor Jamieson said research shows tobacco taxes can be regressive and disproportionately affect lower-income residents and people with addiction; he said that gave him pause about supporting the measure despite budget pressures.

After extended discussion the board considered motions to table the ordinance (moved by Mrs. Cook) and to deny it (moved by Doctor Jamieson). The motion to table failed on roll call, and a later motion to approve the ordinance likewise failed; the chair concluded the ordinance was defeated and would not be imposed for January implementation.

Formal actions and outcomes: Multiple motions were recorded. A motion to table the ordinance (moved by Mrs. Cook) did not carry on roll call; a subsequent motion to approve the ordinance failed on roll call; Chair declared the ordinance defeated and no cigarette tax was enacted that night.

Why it matters: County staff presented the tax as a revenue diversification measure intended to reduce reliance on property taxes and pay for one-time expenditures such as fire-and-rescue exhaust systems and a pharmacy management program. Opponents cited regressivity and uncertainty in revenue projections as reasons to delay or deny the tax.

Next steps: County staff said auditors will return in November and that staff can provide firmer fiscal-year-2024 numbers ahead of any renewed consideration; supervisors discussed tabling until after the audit or waiting to adopt with an implementation timeline that would allow retailers and the public time to prepare.

Quotes: "If somebody wants to smoke and then they can pay the tax," one supervisor said. Finance staff: "This is what we expect to receive...this is an estimation provided by the Virginia Association of Counties."