New York Smokers Flee to Border

ADDISON, Vt. -- Vermont tobacco retailers and convenience stores located near the border with New York state report selling more cigarettes to Empire State residents seeking to avoid that state's higher tobacco tax, The Associated Press reported.

July 1 was the date New York increased its cigarette tax $1.60 per pack to $4.35. Vermont's cigarette excise tax is $2.24 a pack.

Dana Franklin, of the West Addison General Store, told the AP sales have gone up since the effective date. The same happened a few years ago when New York increased its tax, but sales later fell back after Vermont's tax increased, according to the report.

In addition, convenience stores in border towns are also reporting increased gas sales due to a disparity in the gasoline tax between the two states.