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New Smokeless Tobacco Products and Taxes. 5 th National Summit on Smokeless & Spit Tobacco September 22, 2009 Ann Boonn Campaign for Tobacco-Free Kids. National Cigarette vs. Snuff Tobacco Sales, 2007-2008. Taxed Cigarette Sales - 4.2%. Taxed Snuff Sales + 7.3%.
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New Smokeless Tobacco Products and Taxes 5th National Summit on Smokeless & Spit Tobacco September 22, 2009 Ann Boonn Campaign for Tobacco-Free Kids
National Cigarette vs. Snuff Tobacco Sales, 2007-2008 Taxed Cigarette Sales - 4.2% Taxed Snuff Sales + 7.3% Source: TTB Tobacco Statistics
Examples of states with tobacco tax discrepancies • Pennsylvania: • Cigarette tax rate: $1.35 per pack • NO tax on smokeless tobacco products • Tennessee: • Cigarette tax rate: 62¢ per pack (roughly 27% of the average cigarette wholesale price) • Smokeless tobacco tax rate: 6.6% wholesale price
LOW-WEIGHT MOIST SNUFF Traditional Moist Snuff Smokeless 1 tin = 1.2 to 1.5 oz. UST Skoal Pouches 1 tin (20 pouches) = 0.82 oz Camel Snus 1 tin (15 pouches) = 0.32 oz. Marlboro Snus 1 “foil pack” (6 pouches) = 0.1 oz.
MORE LOW-WEIGHT MOIST SNUFF Stonewall Hard Snuff 1 box of 20 “Pieces” = 0.335 oz. Camel Orbs 1 box of 15 “Pieces” = 0.12 oz. Weights of other Camel Dissolvables currently unavailable
Ensuring states adequately tax smokeless tobacco products • Percentage of price tax system, with minimum tax (BEST) • Modified weight-based system • Simple percentage of price • Simple weight-based system (WORST)
FIXING SMOKELESS DEFINITIONS “Smokeless tobacco” means snuff or chewing tobacco and also includes any other product containing tobacco that is intended or expected to be consumed without being combusted. “Smokeless tobacco” means snuff or chewing tobacco. “Snuff” or “Moist Snuff” means any finely cut, ground, or powdered tobacco that is not intended to be smoked [that is intended to be placed in the nasal and/or oral cavity] “Chewing tobacco” means any leaf tobacco that is not intended to be smoked.
Last Point: Put OTP tax revenues towards tobacco prevention and cessation!
If You Ever Need Help (factsheets, projections, model legislation): www.tobaccofreekids.org or http://tobaccofreekids.org/research/factsheets factsheets@tobaccofreekids.org202-296-5469