Basic HTML Version
74
TOBACCO OUTLET BUSINESS
MAY/JUNE 2012
as citizens would take a swipe at just under 100,000
Americans,” he adds. “It is just incomprehensible.”
Local Battles
On the local level, Spann’s experience in state
government gives him unique insight into the
perspectives of state legislators seeking to raise taxes
on cigars. “I was in state government for just under six
years,” he says. “I understand; I get that the ongoing
recession is directly impacting local tax collection
and that many legislators at the city, county and state
level see additional taxation of tobacco products as
low hanging fruit. But as sensitive as we all are to the
revenue issue and the need to fund important services
like firemen, EMT and police, taxing businesses that
are already heavily taxed simply hurts the economy
further. If you put a small company out of business,
it is a double hit on the economy. You have now lost
property tax, payroll tax, income tax, plus all those
employees now go on public assistance and begin
drawing from the public coffers.”
Yet states like Maryland, Michigan and Kansas
among others continue to pursue tobacco tax hikes,
as well as smoking bans. As each proposal arises,
the IPCPR and other industry associations work
to combat new increases and bans, as well as to win
exemptions for adult-only tobacco businesses. Recent
successes in winning cigar tax caps in Connecticut and
New York suggest such lobbying efforts are effective.
But the IPCPR needs more participation from tobacco
businesses to further its goals, notes Spann.
“The best way to be part of that fight is to become
a member and join the effort,” he urges those in the
industry. “We all need to work together and present a
“If you put a small company out of business,
it is a double hit on the economy. You have now lost
property tax, payroll tax, income tax, plus all those
employees now go on public assistance.”