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Retailer warns proposed cigarette tax could drive shoppers across state line

Washington County Board of Supervisors · November 26, 2024
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

A local retailer told the Washington County Board that raising the cigarette tax would send customers to Tennessee, reducing local retail sales and broader county tax revenue; the comment was made during public comment and no staff analysis was presented at the meeting.

At a public comment period during the Washington County Board of Supervisors meeting, local retailer Logan Patrick urged supervisors to reconsider a proposed increase in the cigarette tax, saying even small increases cause cross-border shopping that harms local businesses.

"Most of our customers come across county and state lines to shop with us because we do have a competitive advantage over the tax base right now," Patrick said, warning that a tax increase would not only reduce cigarette sales but also other retail purchases when customers choose to shop across the border. He described customers as "price sensitive" and said differing manufacturer contracts and Tennessee's minimum margin rules make Virginia shops less able to match out-of-state prices.

Board members did not request an immediate staff analysis during the meeting. The comment was recorded as part of the public comment period rather than an action item; no follow-up vote or staff directive on the tax was issued at this session.