Tobacco Pricing

Reports

New consortium resources
The Tobacco Control Legal Consortium has released new tips and tools sheets that provide information on tobacco pricing policy issues. The Consortium’s new documents address cigarette minimum pricing laws, price-related promotions for tobacco products, and the taxation of tobacco products. The documents are part of a series of tobacco policy guides, and are intended to be a starting point for organizations interested in implementing tobacco control measures. Click here to view a listing of the Consortium’s toolkits and guides.

Newly updated Tobacco Pricing Policies Toolkit available from TTAC
Recognizing that every state and territory has its own unique political culture and environment, the Tobacco Pricing Policies Toolkit from the Tobacco Technical Assistance Consortium (TTAC) contains a collection of tools that will provide practical support in strengthening tobacco-related pricing policy. Newly updated in July 2011, the pricing strategies website now includes new resources from successful state campaigns, a print-friendly version of the toolkit, and updated tobacco pricing data throughout. Click here to browse the updated version of the toolkit.

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State Policy

Kentuckians buy 120M fewer packs of cigarettes in-state since tax increase (KY)
Over the past two years since Kentucky doubled its cigarette tax to sixty cents per pack, 120 million fewer packs of cigarettes have been purchased, and tax revenues have increased sharply. A representative of the American Heart Association (AHA) states that while the decline in sales is promising, the state, which has one of the highest smoking rates in the country, should still do more to discourage its residents to quit smoking. The AHA urges law makers to create comprehensive smoke-free air laws in workplaces and public spaces. Read more here.

Senator wants to slash cigarette tax 50 percent (MI)
Michigan Senator Joe Hune wants to reduce the tax on cigarettes from $2 per pack to $1 per pack. Hune says the loss of revenue from the decreased cigarette tax could be made up by reducing Medicaid funds. Opponents of the bill think that reducing Medicaid funding would hurt senior citizens and children, and decreased cigarette prices would increase smoking rates. Hune contends that Medicaid enrollment standards are too lax, and implies that it is hypocritical for the state to discourage smoking while taking in revenue from cigarette sales. The bill has been referred to the Senate finance committee. Michigan Governor, Rick Snyder, opposes the excise tax rollback. Track Senate Bill 517 here, or click here for more details.

NY begins tax collections on Indian cigarettes (NY)
In recent weeks, state agencies in New York have intensified efforts to enforce state taxes on tobacco products sold by American Indian retailers, an endeavor that is expected to bring in an additional $27 million in tax revenue this fiscal year. Inspections of 357 retailers over the past three weeks have resulted in the seizure of approximately 20,000 cartons of cigarettes and 25,000 cigars. The state legislature passed a law in 2010 that requires the collection of taxes on tobacco products sold on reservations to non-Indians. Despite resistance from tribal leaders, court rulings have supported the state’s strategy of collecting tobacco taxes from wholesalers prior to distribution to tribal retailers. Click here to read the full story.

Lawmaker: Special interests snuffed out cigarette tax (WV)
Several West Virginia lawmakers appeared on a TV news segment in July to discuss tobacco control policies in West Virginia. During the discussion, House of Delegates member Don Perdue claimed that the tobacco industry killed a proposal to raise the state cigarette tax, a measure that would have decreased the state’s smoking rates. For smoking rates to decrease, House of Delegates members agreed that the state needs a higher cigarette tax and a comprehensive tobacco control strategy. West Virginia has the highest smoking rate in the country at 27% and a cigarette tax of 55 cents, one of the lowest in the country. Read more here.

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