16
TOBACCO OUTLET BUSINESS
MAY/JUNE 2013
NEWS & TRENDS
MAY/JUNE 2013
Tobacco Across America
A State-by-State Regulatory and Legislative Update
The following are state legislation and
regulatory actions, proposed and pend-
ing, that seek to increase or decrease
cigarette and/or tobacco tax rates or to
impose restrictions on sale and usage.
Alabama:
House Bill No. 15 would in-
crease the per pack cigarette tax from
42.5 cents to 75 cents; House Bill No.
177 would raise the cigarette tax to
$1.425 per pack.
Arizona:
Legislators are considering
adding vapor products to youth tobac-
co prevention laws.
Arkansas:
House Bill No. 1531 would
cap the tax on cigars at 50 cents per
unit rather than assess the full OTP tax
rate of 68 percent of the manufacturers’
price.
Florida:
House Bill No. 473 and Sen-
ate Bill No. 620 would increase the per
pack cigarette tax surcharge by $1.
Senate Bill No. 252 would impose a fee
of 2.6 cents per cigarette on non-set-
tling manufacturer cigarettes.
Kentucky:
Two bills to increase excise
taxes (House Bill No. 119 and House
Bill No. 1359) died in committee.
Maryland:
Senate Bill No. 700 and
House Bill No. 683 would raise the tax
on OTP from 30 percent to 95 percent
of the wholesale price with the condi-
tion that cigars with a wholesale price
of less than $20 per cigar will be taxed
at 95 percent with a cap of $3 per ci-
gar, cigars with a wholesale price of
more than $20 per cigar will be taxed
at 15 percent, little cigars will be taxed
at a rate of $3 per pack of 20, moist
snuff will be taxed at 95 percent or $3
per 1.2-ounce container (whichever
is greater), single-dose smokeless to-
bacco will be taxed at 95 percent or 15
cents per dose (whichever is greater),
and RYO tobacco will be taxed at 95
percent or $3 per .65 ounces (which-
ever is greater). Senate Bill No. 823 and
House Bill No. 683 would increase the
per pack cigarette tax by $1 to $3.
Massachusetts:
Legislators are con-
sidering a $1 per pack cigarette tax in-
crease and raising the OTP tax rate to
210 percent.
Minnesota:
Legislators are considering
a $1.60 per pack cigarette tax increase
and an OTP tax increase of 95 percent.
New Hampshire:
House Bills seek to
increase the cigarette tax by 20-30
cents per pack and an OTP tax rate of
65.03 percent.
New Mexico:
House Bill No. 428 would
raise the OTP tax from 25 percent to 53
percent.
Nebraska:
Legislative Bill No. 439
would raise the cigarette tax from 64
cents to $1.36 per pack. Legislators are
also considering an OTP tax increase to
31 percent of wholesale prices.
New York:
Senate Bill No. 3193 would
raise the per pack cigarette tax from
$4.35 to $6.00.
North Dakota:
House Bill No. 1387 that
would have raised the cigarette tax
from 44 cents per pack to $1.00 failed
to pass the House.
Oregon:
Oregon legislators are con-
sidering a $1.80 per pack cigarette tax
increase.
Rhode Island:
Senate Bill No. 247
would raise the cigarette tax by 90
cents per pack.
Tennessee:
House Bill No. 888 would de-
crease the cigarette tax by 20 cents per
pack from 62 cents to 42 cents on July 1,
2013, reduce the cigarette tax by 20 more
cents per pack on July 1, 2014 and elimi-
nate the cigarette tax completely on July
2, 2015. The bill would also phase out the
tax on other tobacco products over a six-
year period with the tax completely elimi-
nated as of July 1, 2018.
Texas:
House Bill No. 2453 and Sen-
ate Bill No. 1136 would impose a fee
of 2.75 cents per cigarette on non-set-
tlement cigarettes and per .09 ounces
of cigarette RYO tobacco produced by
non-settling manufacturers.
Utah:
A bill that would have taxed e-
cigarettes at 86 percent was defeated
44:29.
Virginia:
House Bill No. 2332 that
would have changed the method of
taxation on moist snuff and loose leaf
tobacco from a weight-based tax to 5
percent of the retail sales price died in
committee.
Upcoming Industry Events
AWMA C-Metric Convenience Industry Outlook Forum and DEF Harmonizing Assortment conference
June 24-25; June 25-27; New Orleans, LA
2013 IPCPR Convention & International Trade Show
July 13-17, Las Vegas, NV
Tobacco Plus Convenience Expo (TPC)
January 29-30, 2014; Las Vegas, NV
