Historic shop closes before July 1 tobacco hike
Friday, June 4th, 2010
Utah’s oldest smoke shop is scheduled to close on June 30, a day before a state tobacco tax hike goes into effect. The owner of the historic shop blames Utah’s cigar tax, the second highest in U.S., while the rate for cigarettes will tie with Montana for the nation’s 18th highest.
“Why would the Utah Legislature pass a law that forces someone to go out of business?” asked customer Bill Staker, as he picked up a box of cigars for half the regular price. “It’s the same as highway robbery, without the mask or a gun.”
Sen. Allen Christensen, R-North Ogden, who fought for years to raise Utah’s tobacco tax, said he’s surprised that Jeanie’s is going out of business.
Christensen had discounted warnings from Jeanies’ owner Gary Klc that the higher taxes on cigars and pipe tobacco — the mainstay of his business — would force him to close his shop at 156 S. State St.
“I felt it was one of those things that people speak out in reaction to something, and think better of it later,” said Christensen. “I hate to see any business impacted by the government that actually goes out of business. But on the same hand, these are business that are selling a dangerous drug. I wish them all luck as they go into a different field.”
Klc (pronounced Kelch), had also that said he could not come up with $125,000 on July 1 to cover the higher tax on his existing inventory, among the state’s most-extensive stock. He said it was too big an investment for products that will be taxed at some of the highest rates in the nation.
In Murray, the Tinder Box, open for nearly four decades, is staying put.
“We’ve reduced our inventory so we won’t have to pay more taxes on products we had already paid taxes on,” said Manager Ken Crandall. “We’re also looking for some good cigars at a lower price point. We’ll make this work — at least we hope we can.”
Jeanie’s employee Tom Calder, one of four workers who will lose jobs, said it’s sad that Utah is losing a classic, old-time gentleman’s shop that harkens back to the 19th century. Despite the high-end products and leather chairs where customers relax and read, Jeanies catered to a broad spectrum of customers.
Klc, a nonsmoker, was known for cashing checks for some of his regular customers, mostly day labors and disabled who would have had to pay a fee elsewhere. Klc said he will miss his customers most, particularly the ones who often dropped by on Saturday mornings to chat.
“The funeral is almost over,” said an emotional Klc of the family business that began in the 1940s when his late father bought out the old United Cigars store on State Street. The shop’s name changed through the years, finally to Jeanie’s in honor of Klc’s mother.
At this point, Klc, 50, has no immediate plans, other than to save some of the historic memorabilia, such as the life-sized Punch wood sculpture, signifying a cigar manufacturer that first registered its brand in 1840, and a Utah cigar box, recalling the days when dozens of factories in Salt Lake City manufactured the smokes.
So far this year, bills increasing tobacco tax rates have become law in three other states: Hawaii, New Mexico and South Carolina. In 2009, bills increasing tobacco tax rates became law in the District of Columbia and 13 states, including Arkansas, Connecticut, Delaware, Florida, Hawaii, Kentucky, Mississippi, New Hampshire, New Jersey, North Carolina, Pennsylvania, Vermont and Wisconsin.
Nationwide, state tobacco tax collections for 2007 totaled $15.2 billion, compared to state alcohol beverage taxes of $5.1 billion.
By Dawn House, June 4, 2010, sltrib.com
Plainer cigarette packages, perceived as boring or unattractive, would make smoking much less appealing to teens, according to a new Australian study.