News and Legislative Updates at Randy's Tobacco Shop


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7/21/13  Are Beer and Cigarettes the New Bioenergy?  Click Here to Read More About This!

February 2009 - The State Children's Health Insurance Program (SCHIP) was signed into law.  The following will be the federal tax increase on different tobaccos:

The new tax rates are effective April 1, 2009;

The cigarette tax rate goes from $.39 per pack to $1.0066 per pack;
The tax on snuff goes from $.585 per pound to $1.51 per pound;
The tax on pipe tobacco goes from $1.0969 per pound to $2.8311 per pound;
The tax on RYO goes from $1.0969 per pound to $24.78 per pound (not a typo).
Additionally the definition of RYO has been expanded to include cigar wrappers to address the "blunt wraps" issue;
The tax change to small cigars (cigars weighing less the three (3) pounds per thousand will be :
 - $.25 per pack
Cigarette Papers will increase to $0.0315 per 50 papers.

Cigarette Tubes will increase to $0.063 per 50 tubes.

Large cigars will increase to $0.4026 per cigar.

 
January 13, 2009 - The latest version of the State Children's Health Insurance Program (SCHIP), HR2, has been officially introduced in House Ways & Means Committee. The industry compromise on the revised tax rate on large cigars has been incorporated into HR2. The new tax rate will be 52.4% with a maximum tax cap on any one cigar at 40 cents per cigar. 
 
In previous versions of SCHIP legislation, the tax cap rate held at $3 per cigar. Your trade association and its federal lobbyists, working in conjunction with the Cigar Association of America, our industry came together to agressively challenge the distasterous, proposed $3 tax cap, and get the substantially reduced to the more sustainable 40-cent tax cap.
 
The IPCPR also recognizes the work of the associate members of your association, who were a key component in educating to Congress on our industry. Thank you to our retail members and their customers for supporting our aggressive grassroots efforts.
 
While HR2 looks to breeze through the House, it may have a slower journey through the Senate, though we do not expect any direct changes to the tax cap rate.
SCHIP Legislation Details
 
The new tax rates are effective April 1, 2009;
 
The cigarette tax rate goes from $.39 per pack to $1.00 per pack;
The tax on snuff goes from $.585 per pound to $1.50 per pound;
The tax on pipe tobacco goes from $1.0969 per pound to $2.8126 per pound;
The tax on RYO goes from $1.0969 per pound to $24.62 per pound (not a typo).
Additionally the definition of RYO has been expanded to include cigar wrappers to address the "blunt wraps" issue;
The tax change to small cigars (cigars weighing less the three (3) pounds per thousand will be phased in over five (5) years at the following rates per year:
2009 & 2010 - $.25 per pack
2011 & 2012 - $.50 per pack
2013 & 2014 - $.75 per pack
2015 and beyond - $1.00 per pack
 
We were successful in continuing to have the floor tax NOT apply to large cigars; however it does pertain to any other tobacco products.
The International Premium Cigar & Pipe Retailers Association (IPCPR) is a not-for-profit trade association organized as the advocate for the independent retail tobacconist and recognized as the "Voice of Authority and Reason" on premium tobacco related issues. 

News and Legislation Update March 2001

Internet Commerce:  Us Respresentative Martin Meehan (D-MA), co-chairman of the Congressional Task Force on Tobacco and Health, said cigarette sales via the Internet are expected to reach $10 billion, or about 20% of the total domestic market, over the next five years.  State officials and health groups fear that Internet sales will reduce State tax revenues, undermine anti-smoking efforts, and make cigarettes available to minors (Boston Globe 2/16/01)
ARKANSAS H 2522 AUTHOR:  French

CIGARETTE AND OTP TAX INCREASE

http://www.arkleg.state.ar.us/ftproot/bills/2001/htm/HB2522.pdf

Levies an additional tax on cigarettes to ensure funding of the Breast Cancer Research Fund and additional programs.

03/04/2001  INTRODUCED.

03/05/2001  To HOUSE Committee on AGRICULTURE, FORESTRY, AND ECONOMIC DEVELOPMENT

CALIFORNIA A 1453  AUTHOR:  Koretz

ADVERTISING RESTRICTIONS - SAMPLING RESTRICTIONS - SMOKING RESTRICTIONS

Prohibits any person, firm, or corporation that displays at one or more retail locations any marketing device intended to advertise or pormote the sale or consumption of any cigarette or tobacco product, including, but not limited to , shelf signs, window stickers or posters, and coupon dispensers, from placing the marketing device at a level that is lower than 4 feet from the floor, and would impose civil penalties for a violation of that provision.

02/23/2001   INTRODUCED.

CALIFORNIA S 322  AUTHOR:  Ortiz

PROHIBITS SALES OF BIDIS OR BEEDIES CIGARETTES

Prohibits any person from selling, offering for sale, distributing, or importing a tobacco product referred to as bidies or beedies.  Makes a violation of this prohibition a misdemeanor.  Makes that person subject to civil action.

02/20/2001  INTRODUCED

03/07/2001  To SENATE Committee on JUDICIARY

CALIFORNIA S 757   AUTHOR:  Ortiz

YOUTH TOBACCO LAWS

Authorizes the State Department of Health Services to conduct onsite sting inspections.  Provides that the sting inspections would occur in response to public compaints as to the sale of tobacco products to minors, including the sale by telephone, mail, or the Internet, and where previous violations have occurred.  Provides that a peach officer is required to identify to the seller the identity of the person under 18 years of age who engaged in the sale of tobacco products.

02/23/2001   INTRODUCED

03/07/2001  To SENATE Committee on PUBLIC SAFETY

CONNECTICUT H.6730  Regular

Would increase the cigarette excise tax by 50 cents (from $0.50 to $1.00) per pack in order to descrease tobacco use among minors.  Would dedicate the additional revenue to provide funding for increased access to health care, particularly for the uninsured.

02/08/2001  Introduced by Public Health

02/08/2001 Referred to Public Health

FLORIDA H.557 Regular

Would authorize the court to direct the Department of Highway Safety and Motor Vehicles to issue a driver's license that is restricted to business and employment purposes only to individuals under the age of 18 found guilty of alcohol, drug, or tobacco offenses.

03/06/2001 Introduced by Peterman

GEORGIA S.208 Regular

Would create the "Electronic Commerce Home Delivery Act of 2001" Would provide for retailers who sell tobacco products, malt beverages and wine to consumers in the State through electronic commerce as long as the delivery order has a retail value exceeding $50.00.  Would provide for electronic commerce retailers to comply with all Sate laws and local ordinances regulating the retail sale of tobacco products.  Would further prohibit the delivery of tobacco products into any counties or municipalities where the retail sales of tobacco, malt beverages and wine are not authorized.  All tobacco products marketed sold and delivered by electronic means would be required to be delivered from the retailer's license premises within the State to the consumer ordering the products and not shipped directly to consumers outside of the State.  All deliveries authorized would be required to be made in vehicles operated and either owned or leased by the electronic commerce retailer and made by drivers who are at least 21 years of age.  Would take effect immediately.

02/16/2001 Introduced by Harbison et al

02/16/2001 Referred to Veterans & Consumer Affairs

02/22/2001  Amended in Veterans & Consumer Affairs

02/27/2001  Amendment Passed Senate

02/27/2001 PASSED Senate

Surgeon General Warning:
Cigars Are Not A Safe
Alternative to Cigarettes!


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