Cigarette sales drop, but more revenue from higher tax in N.C.

RALEIGH (AP) — Retailers in North Carolina aren't selling as many cigarettes as they used to since the state raised taxes on smokes.

But the state also says revenue from the higher tax grew by $157 million.

Data from the state Division of Public Health and the Department of Revenue shows cigarette sales dropped by 18 and a half percent as tax revenue increased in the first full year since the tax went up in September 2005.

North Carolina's tax on cigarettes went from a nickel to 30 cents on September first, 2005. It went up an additional five cents last July.

The full-year data released today amplifies figures the state released last fall. In November, officials noted sales were down 18 percent while cigarette tax revenues were up by more than $110 million.

(Copyright 2007 by The Associated Press. All Rights Reserved.)