Iowa - cigarette sales fall by 36% after $1 bump in cigarette tax..

April 4, 2008 - The increase in sales tax to $1.36 a pack started mid-March of 2007. In 2006, Iowa businesses sold 5 billion cigarettes. In 2007, that number had dropped to 3.8 billion. For the 12 months from March 2007 to March 2008, the number was 3.02 billion. The state is making much more money on the cigarettes that are sold. In the 12 months before the tax increase, the state took in just less than $91 million in tax revenues from cigarettes. That revenue jumped to just over $219 million in the last 12 months. That's a 142 percent increase. A 10% increase in cigarette prices leads to a 4% decline in smoking. Half of the 4% decline typically comes from declines in smoking prevalence and half from decreased consumption. See related news brief: Iowa's cigarette tax is now $1.36 per pack.. (