The New Hampshire Department of Revenue Administration announced Wednesday that the state is raising its tobacco tax by 25 cents, the Manchester Union-Leader reported Oct. 16.

Under a measure passed by the state legislature in June, retailers had three months to rack up $50 million in tobacco tax revenues, or else the tax increase would go into effect. Acting Revenue Administration Commissioner Margaret Fulton said that revenues fell less than $500,000 short of meeting the goal despite a large last-minute tax payment that briefly put the increase on hold.

Cigarettes will now include $1.33 per pack in taxes. "We are still the cheapest game in town," Fulton said, noting that neighboring Massachusetts adds $2.51 in taxes to each pack of cigarettes.

However, tobacco sellers are concerned about the impact on sales, noting that the tax equates to $13.30 per carton of cigarettes. Rick Newman, a lobbyist for McClane Company, a tobacco wholesaler, said, "That's a lot of money. You get to the point where people aren't going to make the trip anymore."