Ninth Stage

Looks like our masters at the capitol have dictated that Tennessee gets a new cigarette tax. It will be a small boon to neighboring states.

Of the states that border Tennessee, Kentucky, Virginia, North Carolina, Georgia, Alabama, Mississippi, Arkansas and Missouri, only Arkansas’ tax rate ($0.59/pack) comes close to Tennessee’s new rate of $0.62 per pack. According to this table, you can save ~$3.20 per carton by driving across the border into Kentucky or Virginia and a cool $4.50 in Mississippi or $4.40 in Missouri.

What percentage of Tennessee’s population lives within, say, a one and a half hour round trip to a neighboring state? Tennessee is a long, skinny state. I bet it’s a large portion of the population living within 45 minutes of a state border.

As it stands I already drive to Franklin KY to save on sales tax, particularly for large purchases. I drive to Bowling Green to buy specialty beer at a reasonable price. How many more will cross borders to save even more on cigarettes? Once across the border, what other shopping will they do? Stupid masters.