Cigarette Tax To Be Discussed By Loudoun County Supervisors

LOUDOUN COUNTY, VA — Cigarettes in Loudoun County may be getting more expensive under a new proposal being considered by the Loudoun County Board of Supervisors. On Wednesday night, supervisors will vote on a proposal to levy a $0.40 tax on any pack of cigarettes sold in the county.

The ordinance was first brought to the board by a recommendation from the Finance/Government Operations and Economic Development Committee in Nov. 2020. The committee also recommended the county attempt to join the Northern Virginia Cigarette Tax Board. The county is expected to be admitted to the board in July, according to an agenda item.

Loudoun County staff members estimate that a tax of $0.02 on individual cigarettes or $0.40 on a pack of 20 cigarettes, would generate around $2 million in revenue. The Northern Virginia Cigarette Tax Board would handle the administration of taxes under the current plan.

Staff members said the added tax revenue could reach more $2.75 million added to the county's general fund, according to county documents. However, supervisors said that tax revenue is not the most important factor for the new ordinance.

"While the adoption of a cigarette tax would generate additional county revenues, the goal of such

a tax is to change consumer behavior leading to healthier outcomes for individuals," staff members wrote in a report. "Several studies suggest that higher cigarette taxes lead to less cigarette use by encouraging current smokers to reduce consumption and discouraging new smokers."

The proposed cigarette tax would also apply to each of the county's incorporated towns, most of which already charge their own tax. The Town of Hamilton is the only town in Loudoun County without a cigarette tax.

Tuesday's meeting is a public hearing, and residents can sign up online to speak at the Loudoun County Board of Supervisors meeting. The meeting can also be viewed online, beginning at 6 p.m.