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Board considers cigarette tax as modest revenue source, staff estimates about $200,000 annually
Summary
During the budget presentation, staff said a local cigarette tax like neighboring counties could bring an estimated $200,000 per year; supervisors discussed comparability and whether to factor the revenue into rate scenarios.
As part of revenue-option discussions, staff said a local cigarette tax could generate an estimated $200,000 annually in Carroll County, based on comparables such as Smith and Wythe counties. "Looking at some of the comparable localities... we would probably be in line with about 200," Justin said when asked about projected cigarette-tax revenue.
Supervisors questioned the comparability of other counties (noting differences in towns and truck-stop activity) and noted that the estimate was not included in the current rate scenarios presented to the board. The board did not take immediate action on a cigarette tax but discussed it as one of several revenue levers that could reduce reliance on savings.
Why it matters: A cigarette tax could modestly offset budget shortfalls without raising property rates, but the estimate is preliminary and would require separate policy action and potential coordination with towns for collection.
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