In an attempt to pad the state budget, lawmakers are proposing to significantly raise taxes on tobacco products. While proposals like these might sound good in a headline or in a press release, in the real world, they hurt the very people and communities our lawmakers claim to represent.
Like many Cleveland small business owners who sell tobacco, I’m still trying to recover from the last hit: the 40-cent increase in the cigarette tax in Cuyahoga County that just went into effect on February 1. And now, a few months later, state lawmakers are coming back for more by raising taxes on tobacco and nicotine products and banning the sale of flavored e-cigarettes.
These proposals aren’t just bad policy; they’re devastating for local businesses like mine. The numbers they’re kicking around are staggering. Cigarette taxes would skyrocket by 94%, jumping from $1.60 per pack to $3.10. This would add an extra $15, resulting in the cigarette tax alone being $31 per carton.
Jason Patel owns the Mega Mart in Cleveland.Jason Patel
But it doesn’t stop there.
Lawmakers want to double the tax on vapes. That will hit those hoping to quit traditional cigarettes by turning to e-cigarettes, products that even public health experts acknowledge are less harmful.
Nicotine pouches, which many adults use as a cleaner, smokeless alternative, would be hit with a whopping 42% tax. Other smokeless tobacco products like snuff or chew would see taxes increase from 17% to 42%.
Clevelanders aren’t made of money. Any hike in the price of products is going to send my customers to states with far lower tobacco taxes. More than 1,300 tobacco retailers operate within 10 miles of Ohio’s borders, ready to take sales from Ohio businesses.
In the convenience store business, tobacco sales make up a significant portion of our revenue. Nearly one in three in-store sales come from tobacco. When you chip away at that, first with local tax hikes and now with proposed state increases, you’re cutting deep into the margins that keep mom-and-pop shops alive.
It’s frustrating because we’re already operating in a highly regulated environment. We follow the rules. We check IDs. We comply with all local, state, and federal laws.
But instead of supporting a regulated system that ensures safe access for adult consumers, state legislators want a ban on flavored e-cigarettes altogether. Why? Because some say these products appeal to youth.
That’s a serious concern, and I agree that we should keep tobacco and nicotine products out of the hands of minors. That’s why retailers like me strictly enforce the 21+ purchase requirement. We take it seriously because it’s the law and because it’s the right thing to do.
Punishing all retailers and adult consumers because some kids are getting their hands on products from illegal sellers or online sources doesn’t make sense. It just pushes people away from regulated storefronts like mine and into the illicit market or across state lines, where flavored products and lower prices await.
That’s not good for Ohio’s small businesses, and it’s not good for public health either.
Flavored e-cigarettes and nicotine pouches are often used by smokers transitioning away from traditional cigarettes. Why would we make it more expensive and harder for people to access alternatives?
These proposed policies do more harm than good. They hurt responsible retailers. They drive consumers toward unregulated sources, and they undercut our state by sending revenue to other states.
If lawmakers are serious about funding vital programs with tobacco tax revenue, they should be working to maintain that revenue, not chasing it away with bans and tax hikes that will drive purchases underground or across the border.
Jayson Patel owns Mega Mart in Cleveland.
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