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Indiana--statewide smoking ban
House Bill 1018, exempts casinos, other gambling establishments, and retail tobacco shops, but continues to potentially exclude cigar bars. Additionally, retail tobacco shops would have to meet certain criteria to remain exempt. The bill has passed the House and now awaits action in the senate.
A legislative action alert has been initiated challenging a legislated statewide smoking ban bill:
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Maryland--tobacco excise tax increase
HB853 and SB654, identical legislation, proposes to increase the OTP excise tax rate from 15% to 90%-- a 500% increase. While sources say these bills will not survive the legislative process, retailers have already testified before one committee and plan to attend a senate hearing on March 10.
We continue running a Legislative Action Alert challenging the tax increase:
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Mississippi--smoking bans and tax increases-
Several bills proposing an array of tobacco tax increases and another attempt at a statewide smoking ban have all died in their respective committees--again.
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Nebraska--tobacco tax increases
LB436 calls for higher cigarette and smokeless tobacco increases. The legislation also calls for an increase in the OTP excise tax (applied to all cigars) from 20% to 65% of the wholesale price, representing a 225% increase.
The legislation remains in the Revenue Committee.
A legislative action alert has been initiated:
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California
With the likelihood of a cigarette ballot initiative appearing on the June 2011 special election ballot, efforts by the major cigarette companies are already underway to challenge and ultimately defeat the initiative. The California Association of Retail Tobacconists (CART) and the IPCPR have signed on to the coalition.
Additionally, efforts and progress continue on securing a cigar tax cap. There remain a good bit of work before us on the cap, and as we continue forward, we will keep you updated.
A third issue has recently develop in California-- SB575 proposes to expand the statewide smoking ban, including eliminating the exemption for retail tobacco shops. Understanding there exists strong opposition to this bill in the State Assembly, the IPCPR continues holding on initiating a Legislative Action Alert at this time.
We continue monitoring SB575 and may likely initiate an Action Alert shortly. All California retailers will be promptly notified when the Legislative Action Alert is initiated.
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New Jersey--smoking ban expansion, tax reductions
AB1062 calls for eliminating the smoking exemption for casinos in the state. The bill continues sitting in its respective committee. Retail tobacco shops will remain exempt from the statewide smoking ban.
AB2590 proposes to reduce the state's cigarette tax by 30 cents per pack (from $2.70 to $2.40 per pack).
AB2875 proposes to tax little cigars as cigarettes.
As the session progresses, we will continue monitoring these bills and will take the appropriate action when warranted.
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New York--cigar tax cap, statewide flavored tobacco ban
State retailers, supported by the IPCPR, the CRA, and CAA, continue working together to secure the much-needed cigar tax cap. While progress is being made, it is a slow, tedious road.
When the time comes, the IPCPR will initiate a Legislative Action Alert supporting the tax cap legislation.
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Illinois--Smoking ban revision
HB1310 proposes to ease statewide smoking restrictions by allowing local liquor commissions to issue smoking permits for qualifying businesses.
We continue running a Legislative Action Alert and urge all Illinois members, consumers, and industry friends to seize this unique opportunity:
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Oregon--Tobacco tax increases while retaining present cigar tax cap
HB2110 proposes to increase the excise tax on cigars by 55.25% (from 65% to 120.25% of the wholesale sales price), while retaining the present cigar tax cap of 50 cents. This represents an increase of 85%. While the cigar tax cap remains, this increase will prove detrimental to the sale of pipe tobacco and other tobacco products (65% already proves a tremendous challenge to retailers in the state).
Two other bills propose an increase in cigarette taxes. All bills remain in the House's revenue committee awaiting further consideration. |
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South Carolina--smoking ban
Several bills have been introduced to revise the state's present smoking ban. These proposals call for banning smoking in certain bars, lounges, and other businesses. Tobacco retailers and manufacturers will remain exempt from the proposed bills.
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Texas-smoking ban
Two bills have been introduced calling for a statewide smoking ban. Both bills exempt retail tobacco shops, cigar bars holding state liquor licenses, and manufacturing facilities. These exemptions were secured through the collective efforts of the IPCPR, the Texas Cigar Merchants Association (TxCMA), and the Cigar Association of America.
While these bills have presently stalled in their respective committees, questions remain if their sponsors will be able to secure a majority of votes to see their ultimate approval.
As The IPCPR, TxCMA, and CAA secured these key industry exemptions working with key members of the legislature, the IPCPR will not initiate a Legislative Action Alert at this time.
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West Virginia--tax increase, smoking ban
Legislation proposing tobacco tax increases were rejected in their respective committees. We continue monitoring the legislature in the unlikely event similar proposals are reintroduced during the current session.
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Washington--smoking ban revision, flavorings ban
Legislation proposing to ban the statewide sale of flavored tobacco products failed in committee, effectively killing the legislation for the 2011 session.
State retailers, the CAA, and IPCPR, continue work on two bills that would again allow smoking in retail tobacco shops and cigar bars.
SB5542 favorably advanced from its committee. However, its House companion bill, HB1683 failed to advance.
Not entirely bad news as HB1683 (and SB5542) demonstrates a positive fiscal impact to the state budget, these bills remain active until the end of the legislative session.
A Legislative Action Alert remain active for the Cigar Bar bills:
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New Mexico--tobacco tax increase
SB81 proposes increasing the excise tax rates on cigarettes and other tobacco products. Specifically, the legislation calls for increasing the OTP excise tax rate from 25% to 57% of the wholesale price-- a 128% increase.
This legislation remains in its respective committee.
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Pennsylvania--smoking ban revision
SB35 proposes to redefine a "drinking establishment" in regard to the State's smoking ban exemptions. Would include the following to the definition of "public places": (1) A full service truck stop; (2) A residential facility; (3) A private club; (4) A drinking establishment; (5) A gaming floor; and (6) Any outdoor deck, patio or similar outdoor service area which is part of a food or drinking establishment. Presently, retail tobacco shops are not affected.
The bill remains in its initially-introduced committee awaiting further consideration.
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