Scott Zucca and his family members own tobacco shops across Delaware.
Running independent retail tobacco and premium cigar shops in Delaware isn’t always easy, but it’s a business I’m proud of. I’ve spent years building relationships with loyal customers who come to me not just for cigarettes but for premium cigars, lighters and the kind of personalized service you just don’t get at big box stores. We’re a niche shop; like most small businesses, every customer counts.
So, when I heard that the legislature is proposing an increase to Delaware’s cigarette tax, raising it from $2.10 to $3.60 a pack, I felt a mix of frustration and concern — not just for my shops but for the people I serve and the broader communities that rely on the local economic activity businesses like mine help sustain.
Let’s be clear: This tax hike hits the working class the hardest. It’s well documented that most smokers are lower-income individuals. When prices go up, they don’t just feel it; they struggle with it. Unlike wealthier individuals who may not notice an extra few bucks here or there, my customers keep a close eye on every dollar. This tax is regressive by nature, punishing people who are already stretched thin by rising costs across the board, from groceries to gas to utilities.
And, as a tobacco shop owner, I’ve seen firsthand how these kinds of tax hikes can create a ripple effect. Sure, the tax is aimed at cigarettes, but many customers who come in for a pack also grab other items. Some are collectors who enjoy fine cigars. Others stock up on tobacco accessories. When people start buying less — or worse, stop coming altogether — it impacts everything we sell.
Delaware’s current tax rate has actually helped small shops like mine stay afloat. With Pennsylvania’s cigarette tax already sitting at $2.60 a pack and New Jersey’s sitting at $2.70 a pack, we’ve had the benefit of out-of-state shoppers crossing the borders to make their purchases here. Whether they’re shopping at my stores or at convenience stores and gas stations that sell tobacco, they’re supporting Delaware businesses that reinvest in the community and help fund state programs through income taxes.
If we raise our tax to surpass Pennsylvania’s or New Jersey’s, for example, that advantage disappears. The incentive for those customers to come here evaporates. And with it goes a chunk of our revenue.
Delaware is currently fiscally sound. There’s no urgent financial hole to fill. So, the question remains: Why now? Why take aim at small businesses and low-income consumers just to squeeze out a few more dollars in tax revenue?
Retail tobacco outlets like mine are part of the fabric of the community. We know our customers by name. We provide jobs. We contribute to local tax bases. And we offer a legal product in a responsible, regulated environment. But we can’t absorb hit after hit without it catching up to us.
Raising the cigarette tax right now is not just shortsighted; it’s harmful. It won’t just push some people to quit (which, if that’s the goal, there are better public health approaches). It’ll push them to buy elsewhere, likely online or across state lines, where Delaware gets none of the benefit.
To our lawmakers in Dover: I urge you to step back and look at the full picture. This tax increase will not just affect smokers; it will affect small-business owners, employees and entire communities that rely on the local economy. There are smarter, more equitable ways to raise revenue, if truly needed.
We’ve weathered a lot these past few years. Please don’t make it harder for us to keep our doors open.
Reader reactions, pro or con, are welcomed at civiltalk@iniusa.org.
