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Thursday, April 29, 2004

Tax increases to affect smokers, cars

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By

RICHMOND -- Taxpayers in Virginia will dig deeper into their wallets now that the General Assembly passed record tax increases.

A family that spends $20,000 on items a year will pay $100 more per year in sales taxes. A family that spends $25,000 will pay $125 more in taxes and a family that spends $30,000 will pay $150 more.

The $1.38 billion tax plan boosts the state sales tax by one-half cent on the dollar and raises the cigarette tax to 20 cents per pack Aug. 1 and to 30 cents per pack March 1.

A pack-a-day smoker would pay $63.88 more for cigarettes this year and $100.38 more next year. The tax on a pack of cigarettes is now 2.5 cents, the nation's lowest. Even with the increase, Virginia still will have one of the lowest cigarette taxes.

Taxpayers also will be impacted by the sales tax increase.

For example:

• Customers will have to pay $105 for a $100 set of pots and pans that now totals $104.50 after taxes.

• Customers will have to pay $20,994 for a $19,995 base model Toyota Prius that now totals $20,894 after taxes.

• Virginians will have to pay $4,198 for a $3,999 32-inch Plasma television at Best Buy that now totals $4,179 after taxes. A $399 Apple Pod player that customers now pay $416.96 after taxes will cost $418.95 later.

• Shoppers will have to pay $2,256 for a $2,149 leather sofa at IKEA that now totals $2,245 after taxes. Customers will have to pay $12,828 for a $12,218 11/4-carat diamond platinum engagement ring that now costs $12,767 with taxes.

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