NEW TOBACCO AND E-CIG LAWS THAT AFFECT RETAILERS

This year (2014) has been a busy year for state legislators with regard to tobacco legislation.
  • 25 state legislatures considered cigarette and/or tobacco tax-rate increases.
  • 16 states debated bills to assess a tax on e-cigarettes.
  • 14 states deliberated bills to restrict the use of e-cigarettes/vaping in public places.

Even so, few tobacco and e-cigarette bills have actually been passed and enacted into law.

Tobacco Legislation for 2014 and how it effects you:

Cigarette and/or Tobacco Tax Increases

Tax increases on cigarettes and/or tobacco products failed to pass in Alabama, Florida, Hawaii, Kansas, Kentucky, Maine, Maryland, Mississippi, Missouri, Nebraska, Oklahoma, Oregon, Rhode Island, Tennessee, West Virginia, Wisconsin and Wyoming.

Vermont has successfully enacted a tax increase on cigarettes/little cigars and smokeless tobacco. The law went into effect July 1, 2014. The tax includes a 13 cents per pack increase on cigarettes/little cigars raising the rate to $2.75 per pack. The new law also raises the excise tax rate on moist snuff to $2.29 per ounce, or $2.75 per 1.2 oz. tin. It also changes the tax rate on other smokeless-tobacco products to the greater of $2.29 per ounce or, if the package contains less than 1.2 ounces, $2.75 per package.

E-Cigarette Tax Proposals

Bills to assess a new tax on e-cigarettes failed to pass in Hawaii, Indiana, Kentucky, New Jersey, Oklahoma, Oregon, Rhode Island, South Carolina, Vermont and Washington.

North Carolina has successfully enacted a tax on nicotine in a solution used for electronic-vapor products. The tax is applied at a rate of 5 cents per fluid milliliter of consumable nicotine solution product.

The following is a list of state with legislatures still in session this year (as of 8/1/2014) with bills still pending:

  • California (a proposed $2.00 per pack cigarette tax increase)
  • Massachusetts (a proposed bill to increase the tax on other tobacco products to 45% designated for a revenue study)
  • Michigan (a proposed bill to tax moist snuff at 53 cents per ounce as opposed to the current 32% tax rate)
  • Michigan (a proposed tax of 15 cents per 1.5 milliliters on the nicotine solution in vapor products including electronic cigarettes)
  • New York (a proposed $1.65-per-pack cigarette tax increase)
  • New York (a proposed 75% tobacco products excise tax on e-cigarettes)
  • Ohio (a proposed 60 cents per pack cigarette tax increase over two years and 49% tax on other tobacco products over two years)
  • Ohio (a proposal to assess the $1.85-per-pack cigarette tax on e-cigarettes)
  • Pennsylvania (a proposed bill to allow the City of Philadelphia to assess a $2.00-per-pack cigarette tax to fund the Philadelphia Public School District).

Public Restrictions on E-Cigarette Use/Vaping

Bills to restrict the use of electronic cigarettes in public places failed to pass in Alaska, Hawaii, Kentucky, Louisiana, Maryland, New York, Oregon, South Carolina and Vermont.

Minnesota succeeded in enacting a law prohibiting the use of e-cigarettes in government-owned buildings and schools.

The following is a list of state with legislatures still in session this year (as of 8/1/2014) with e-cigarette/vaping-use bills still pending are California, Delaware, Massachusetts and Pennsylvania.

For more information on tobacco law and FDA rules for retailers please visit the FDA’s website: FDA Tobacco Compliance Webinars

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Jim Richards

Jim Richards is President of TheCstoreEstore, the leading online distributor of point of sale cigarette racks, tobacco fixtures and cigarette display cabinets and the exclusive manufacturer of M-Series Overhead Cigarette Racks.

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