MOBILE, Ala. – Gov. Robert Bentley has proposed raising the Alabama cigarette tax by 82 cents, a move that has retailers upset, WKRG-TV reports. If the tax is raised, “not only will they buy their cigarettes in another state, they will buy their soda and everything else in that state too,” Pulin Patel, owner of a Mobile convenience store, told the news outlet.

While the governor and supporters are pushing the measure as one that would bring in more revenue for the state, business owners along Alabama’s borders worry about lost sales because of higher cigarette taxes. “Tobacco tax is really a direct transfer between the customer and the government. So the retailer just has that much less money to take a shot at. And in general, taxes make people look for other means to purchase a product, namely a no tax, low tax alternative,” said Jeff Lenard, NACS vice president. “You don’t get that drink sale and you don’t get that snack sale.”

Meanwhile, the Alabama House of Representatives held a hearing on its own proposal to raise the cigarette tax by 25%. Sponsored by Rep. Patricia Todd, this measure is expected to generate $60 million in additional revenue annually.

During an Alabama House Ways and Means General Fund committee meeting this week, Bart Fletcher, president of Petroleum & Convenience Marketers of Alabama, said, “We do believe that we will see a loss of sales in our industry and that will transfer into decreased employment, stores may not be able to survive, and just some negative consequences that were unintended.”