The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Sunday, April 14, 1996                 TAG: 9604120299
SECTION: PORTSMOUTH CURRENTS      PAGE: 06   EDITION: FINAL 
TYPE: Editorial 
                                             LENGTH: Short :   27 lines

COSTLY NICKEL: PROFITS UP IN SMOKE

Everybody favors higher ``sin taxes.'' However, Portsmouth City Council is wise to heed the pleas of small business owners whose bottom line depends a lot on traffic generated by cigarette sales.

The city manager has proposed an increase of 5 cents a pack or 50 cents a carton on cigarettes. It sounds fair enough, except that Portsmouth's tax already is $1 higher per carton than the taxes in Chesapeake and Suffolk. The store owners told council that any increase could drive away customers who only have to drive a few miles for much cheaper smokes.

Council properly asked for a report on sales since the last increase pushed Portsmouth taxes well beyond those in neighboring cities. If the numbers show a definite decrease in sales, the council owes it to the small business owners to try to keep Portsmouth taxes in line with others.

It's not the tax on cigarettes that is bothersome. It's the loss of business for small merchants that should be the main concern. by CNB