Pa. Merchants Benefiting From Higher NJ Tobacco Taxes

by KYW's John Ostapkovich

The tiny Bucks County borough of Morrisville, Pa. is home to at least eight tobacco shops, drawing many of their customers a short distance across the Delaware River but a long way in terms of tax savings.

[pullquote quote=""It's 98 percent New Jersey customers. Actually maybe 99.""]

Issam Latif owns Smoker's Palace just off the Pennsylvania side of the "Trenton Makes" bridge, and co-owns another shop with a cigarette rolling machine right around the corner.

On the mix of patrons:

"It's 98 percent New Jersey customers.  Actually maybe 99."

What draws them across the river is a $1.10-per-pack difference in the cigarette tax between Pennsylvania and New Jersey.

This guy, heading out of another tobacco shop nearby with cigars and cigarettes, says that really adds up:

"Probably about $40 a week."

Even with Trenton government offices shut for the business holiday on Monday, Latif likes what he sees:

"One, two, three, four, five, six customers.  We have three customers waiting at the machine, so it's good business."

There's another cluster of tobacco shops just off the now closed Calhoun St. Bridge.

(Photo by KYW's John Ostapkovich)