The problem is,
the people making the decision AREN'T the people paying for its consequences. The tax on Cigarettes goes to the Feds and the State, not the town. The convenience store and gas station owners will be the ones who pay.
And while the total revenue from cigarettes is somewhat significant, the real revenue comes from the add-ons. Folks come in to
buy their daily pack, and while they're in the store pick up a coffee, some lottery tickets (high margins!!!), a newspaper, etc. When they have to go out-of-town for their butts, all these other sales go with them. (Not to mention the gasoline sales).