Last year, to much outcry from liberal quarters, New Hampshire cut its tobacco tax by 10 cents a pack.
The move was designed to bring in more revenue, at least in part by providing out-of-state purchasers an added incentive to buy in the Granite State. Based on recent numbers, the cut appears to be having its intended effect. From the New Hampshire Union Leader:
The tobacco tax is up nearly $1 million over estimates, producing $15.1 million for the month. This is the second month the tax has produced more than estimates, after six months of lower-than-expected revenue.
Lawmakers lowered the tax 10 cents a pack last year with the hopes of spurring growth.
Previously, the Union Leader also reported that "tobacco taxes were $900,000 ahead of estimates" in January-- good news for a state that took controversial action dogged by skepticism.