THE PRICE OF CIGARETTES DEPENDS ON WHO'S TAXING

Question: What is the actual cost of a pack of cigarettes if you remove
all the state and federal taxes?

Christopher Flowers, San Jose

Answer: Since prices vary among brands and merchants, the answer depends
on where you shop and what you buy. But whatever you pay for a 20-cigarette
pack in California, the price includes 61 cents in special state and
federal taxes on top of Santa Clara County's 8.25 percent sales tax. The
federal cigarette tax is 24 cents per pack, while the state tax is 37
cents.

That brings the average cost of a pack of cigarettes in California to $2,
according to the Tobacco Institute's data for 1996, the most recent year
for which the figures are available.

In California, localities do not impose any additional city or county taxes
on cigarettes sales, said the industry group. But in several other states,
they do.

New York City, for example, imposes an 8-cent tax per pack over the state's
56-cent tax. The average cost of a pack in New York state in 1996 was
$2.20.

For the best prices, move to Kentucky, where in 1996 a pack averaged $1.45.

Revenue from federal cigarette taxes goes into the general fund, while a
portion of California's revenue is earmarked for anti-smoking education and
research into diseases such as breast cancer. New federal and state
proposals would raise taxes up to $1.50 per pack to pay for social
programs.

Question? Call (408) 920-5003.