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    New Hampshire Cigarette Tax Rises

    Lagging tax revenues drive the 25-cent increase to $1.33 a pack.

    CONCORD, N.H. -- New Hampshire's cigarette tax rose 25 cents to $1.33 a pack on Wednesday, after revenue from the tax over the last three months did not hit $50 million, the amount that would have held off the increase, according to The Associated Press.

    Acting State Revenue Commissioner Margaret Fulton announced the increase Wednesday, after the department certified receipts did not reach the necessary level.

    Retailers, especially those near the state's borders, argued last spring that keeping the tax at $1.08 a pack might earn the state more in taxes by attracting extra customers. Legislators approved the increase earlier this year, but made it conditional on meeting the $50 million goal.

    The cigarette tax in Massachusetts is $2.51 a pack, almost double New Hampshire's even with the increase, the AP reported.

    Cigarette wholesalers pay the tax by buying tax stamps, and in recent weeks, worked to reach the goal by buying stamps and putting them on inventory ahead of the deadline. The state had said at the beginning of October the receipts fell about $2 million short.

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