Council considering a hike in tobacco retailer permit fee: extra funds would be used to crack down on cigarette sales to minors.

The city of Los Angeles is considering raising its tobacco retailer permit fee--which has been in place less than a year--to fund the hiring of more inspectors to crack down on the sale of tobacco products to minors.

City Administrative Officer Bill Fujioka makes the case to increase the fee to $300 from the existing $208 in a November memo to the City Council's budget and finance committee. He states that more inspections are needed and existing revenue from vendors is $360,000 less than is needed to cover costs.

While any establishment that sells tobacco products must pay the increased fee, it's expected to hit tobacco products specialty stores the hardest. The original fee has been in place only since January of this year.

For Beverlywood Tobacco Co. owner Some Tasien, this may prove to be the last straw. He's planning on closing up shop when his lease expires next year. While Tasien says the $92 annual increase may not be a huge burden on his tobacco products business, it's the cumulative impact of taxes and fees on tobacco that's taking a toll on his bottom line.

"The city is going to keep coming back again and again, for more fees and taxes, as will the state," Tasien said. "The fees on tobacco are being pushed up to the point where it's not worth it for us to do business any more."

But not all tobacco retailers are so pessimistic about the impact "of the increase. The owner of Green House Smoke Shop in Venice, who declined to be identified for this story, said that while he didn't like the fee, it amounts to about 25 cents per day. "It really isn't going to impact our bottom line all that much," he said.

Assuming the budget committee and the full City Council act upon the request in coming weeks, the fee increase would kick in as of January 2008.

Staff reporter Howard Fine can be reached by phone at [phone], ext. 227, or by e-mail at [e-mail].