Legislating Tobacco

Taxes and restrictions on tobacco continue to proliferate, as government bodies strapped for cash view cigarette taxes as a way to raise money without public objections and public attitudes turn more against public smokers.At the national level, bills continue to be introduced that would grant the Federal Drug Administration (FDA) control over all tobacco products. Three major bills were introduced in 2001 to grant this authority, with each extending additional prohibitions. One outlawed self-service displays and any tobacco advertising affixed to the inside surface of a window facing outward; a second restricted all in-store advertising to a "tombstone" format using black lettering on a white background. The third classified nicotine as a drug and tobacco products as medical devices, requiring states to create licensing laws.Local municipalities are taking further steps to restrict smoking and merchandising of products. New York City has garnered considerable attention for its smoking ban, which takes effect in April, banning smoking in most public places. In Minnesota, both Eden Prairie and Preston have banned all tobacco P-O-P inside and outside stores and allow only 2-inch "tombstone" ads for brands on small signs, according to the Tobacco Merchants Association. Such local restrictions are becoming more commonplace, making it difficult for marketers to meet each retailer's needs.The taxing of tobacco products is growing rapidly, reports Jeff Lenard, director of communications for the National Association of Convenience Stores. In 1999, three states introduced laws adding taxes onto tobacco products. In 2000, two states created new taxes. In 2001, that number grew to five states, and in 2002, 21 states added tobacco taxes. Already in 2003, he says, four states have added taxes and 17 others have tax increases proposed.Maryland, which is considering its third cigarette-tax increase in five years, is proposing a 36-cent increase to the current $1 tax. The tax was increased 34 cents in 2002. State Senator Ida Ruben, who proposed the tax, says that higher taxes discourage new smokers. Governor Robert Erhlich has promised to veto the tax hike, saying that consumers pay enough already, and it would only send Maryland consumers to other states to buy tobacco.Other states now considering tax increases include Wyoming, where the excise tax would increase 400% to 60 cents a pack and Ohio, where a bill to increase taxes by 45 cents per pack is being considered.

P2PI MEMBERS

JOIN P2PI

You May Also Like

Retail Media in 2024

Dick’s Sporting Goods’ Resale Events Return