NATO E-News Update: NYS Taxes, PACT Act Update, & Tobacco Legislative News
NATO New York Strategy: Video and Tax Windfall Letters
Today, NATO uploaded a video message opposing the New York State cigarette tax increase on the association’s website (www.natocentral.org) and on YouTube. In addition, NATO sent a second letter to New York Senate Finance Committee members urging them to oppose the governor’s plan to increase the state cigarette tax by $1.00 per pack and the state OTP tax rate on pipe tobacco and cigars from 46% to 90% of the manufacturer’s price.
**If you would like to send a letter to oppose the governor’s plan, please contact me and I will send you the form letter as a file that you can mail, fax, or e-mail. Please help us fight the good fight!!**
NATO Files Comments on PACT Act and FDA Outdoor Advertisement Ban
This week, NATO filed comments supporting the U.S. Postal Service’s proposed rule to enforce the provisions of the PACT Act prohibiting the mailing of cigarettes, roll-your-own tobacco and smokeless tobacco. Also this week, NATO filed a set of comments objecting to the FDA’s notice of rulemaking regarding restrictions on outdoor tobacco advertising. The Postal Service will be issuing an initial rule implementing the PACT Act law by June 29, 2010, just two days before the PACT Act takes effect on July 1st. The FDA has now extended the time to submit comments on the outdoor advertising ban restrictions to July 17, 2010. Copies of NATO’s comments accompany this E-News Bulletin.
State Tobacco Legislative Update
Connecticut: The Connecticut legislature adjourned without taking any action on a bill that would have increased the OTP tax on pipe tobacco and roll-your-own tobacco to $73.84 per pound. Earlier this month, NATO sent each Connecticut lawmaker a letter regarding the potential tax windfall that the state would receive due to the federal PACT Act taking effect July 1st.
Georgia: Several bills that would have increased the state’s cigarette tax rate by $.63 per pack and $1.00 per pack, respectively, plus another bill that proposed raising the OTP tax from 10% to 25%, were not passed due to the adjournment of the legislature.
Kansas: A $.55 per pack cigarette tax increase and an OTP tax rate increase from 10% to 40% were not passed by the Kansas legislature. Also, a bill to tax little cigars as cigarettes also failed.
Massachusetts: The Massachusetts legislature did not pass a bill to raise the excise tax on cigars to 110% and the tax on pipe tobacco to 120% while also rejecting a ban on flavored tobacco products.
Minnesota: A bill that would have taxed little cigars as cigarettes was amended and the tax provisions were deleted from the legislation.
New Hampshire: The New Hampshire House Finance Committee defeated the governor’s proposal for a $.20 per pack cigarette tax increase. However, the House passed an increase in the OTP tax rate from 48.59% to 65.03%. This OTP tax increase is still pending in the New Hampshire legislature. New Hampshire was one of the states in which NATO sent letters to lawmakers informing them of a tax windfall due to the enactment of the PACT Act.
South Carolina: The South Carolina Governor vetoed a $.50 per pack cigarette tax increase, but both the Senate and the House voted to override the veto. The new higher cigarette tax rate of $.57 per pack goes into effect on July 1, 2010.