Tax impact: Smokers travel as owners see sales slip

UPPER DARBY, Pa. (WPVI) -- Philadelphia's cigarette tax has driven up the price per pack and is driving smokers to shop elsewhere.

It's good news for businesses in Bucks and other neighboring counties.

They are welcoming nicotine addicts looking to save a few bucks, but shops within the city limits say they are hurting.

Action News met Michael Tazioly on Friday on his way to buy cigarettes in Upper Darby. Tazioly lives in Kensington.

Using his SEPTA TransPass, he jumped on the El and rode the roughly ten miles to escape Philadelphia's new $2 a pack surcharge.

"For a pack of Newports [in Philly] $9.50 to $9.70. [In Upper Darby], $6.50 with tax included," Tazioly said.

The $2 Philadelphia tax hike was signed into being in late September.

The goal is to raise $50 million for Philadelphia schools.

But corner store owners in Philadelphia say the hike that has boosted pack prices into the $8 and $9 range is killing their business.

"It's been a very tremendous impact, sales have been down like 15%," store owner Cheito Matos said through a translator.

Matos says sales are off across the board.

It seems people who go elsewhere for cigarettes buy other items there, as well.

Steve Hershowitz is involved in wholesaling. He and others fear the cigarette price differential could doom some Mom and Pop stores unless City Hall rolls back some of the $2 tax bite.

"Overall, it's not only hurting everybody, it is eventually going to shut half these stores down. They were hurting to begin with," Hershowitz said.

Some small retailers have approached city council members to see if they can get a hearing on this issue.