Pennsylvania Legislators Considering Excise Tax on Ecigs!

[Bill Godshall]

Here's a news article about the PA House amending and approving the bill (HB 1177) to allow Philly to impose a $2/pack cig tax.
Last-minute insert helped get Phila. cigarette tax approved - Philly.com


The PA Senate is set to consider this bill tomorrow, and appears poised to send it to Gov. Corbett.

Corbett has until Friday to either veto or sign the budget bill (if he does nothing, it will become law automatically). Since the Philly cigarette tax bill is budget related (similar to the pension bill Corbett wants enacted), since Corbett isn't pleased that the House GOP didn't approve or even consider the pension bill, and since Corbett is running for reelection (and is trailing in the polls), Corbett has some important decisions to make this week.

 

[SensesFailed]

This state government is garbage

 

[Bill Godshall]

SenseFailed wrote

This state government is garbage

So far, and compared to many other states, PA's General Assembly and Governors have been very kind to tobacco harm reduction.
No taxes on smokeless tobacco or e-cigs, no e-cig marketing restrictions, and vaping isn't banned anywhere (except in Philly).

It would be helpful if the General Assembly enacted SB 1055 to ban the sale of "alternative nicotine products" to minors, and we need to urge them to do so during this summer.

 

[Bill Godshall]

Philadelphia Politicians Hopeful As Pa. Senate Prepares to Vote on Cigarette Tax « CBS Philly

If this $2/pack cig tax for Philly is approved, legal cigarette sales will decline by >50% in Philly, lots of cigarette smuggling will occur, e-cig sales will skyrocket, and many more smokers in Philly will begin to vape.

 

[rothenbj]

Philadelphia Politicians Hopeful As Pa. Senate Prepares to Vote on Cigarette Tax « CBS Philly

If this $2/pack cig tax for Philly is approved, legal cigarette sales will decline by >50% in Philly, lots of cigarette smuggling will occur, e-cig sales will skyrocket, and many more smokers in Philly will begin to vape.

You can't call it smuggling if Philadelphia residents elect to buy their cigarettes in Bucks, Montgomery, Delaware or Chester counties. It's just an economic decision on where to make their purchase.

 

[SensesFailed]

SenseFailed wrote


So far, and compared to many other states, PA's General Assembly and Governors have been very kind to tobacco harm reduction.
No taxes on smokeless tobacco or e-cigs, no e-cig marketing restrictions, and vaping isn't banned anywhere (except in Philly).

It would be helpful if the General Assembly enacted SB 1055 to ban the sale of "alternative nicotine products" to minors, and we need to urge them to do so during this summer.

I meant in general lol

 

[DrMA]

Philadelphia Politicians Hopeful As Pa. Senate Prepares to Vote on Cigarette Tax « CBS Philly

If this $2/pack cig tax for Philly is approved, legal cigarette sales will decline by >50% in Philly, lots of cigarette smuggling will occur, e-cig sales will skyrocket, and many more smokers in Philly will begin to vape.

If only Philly didn't ban vaping... This is just gonna make life even more miserable for the nicotine users in Philly whatever form of delivery they choose. I do hope tobacco tax revenues for Philly plummet and they get bit back by their own absurd practices.

 

[Bill Godshall]

Yesterday, the PA Senate amended and approved the bill (HB 1177) to let Philly impose a $2/pack cig tax (pg 52-56), and sent it back to the House, which scheduled its next voting session August 4. Philly officials are urging the legislature to resolve its differences, pass bill ASAP.
Bill Information (History) - House Bill 1177; Regular Session 2013-2014 - PA General Assembly
Regular Session 2013-2014 House Bill 1177 P.N. 3933
Cigarette Tax Stalled; School Funding in Danger | News | Philadelphia Magazine
Cigarette Tax To Fund Philadelphia Schools Suffers Setback As Pa. State Senate Amends Bill Further « CBS Philly
Cigarette tax for Philly schools bill hung up by House, Senate fight
http://6abc.com/politics/pa-budget-bill-passes-but-philly-schools-in-limbo/170549/
Pa. Senate action delays Philly cigarette tax passage - Philly.com
Cautious optimism on final passage of cigarette tax - Philly.com


Interestingly, the estimated $80 million in annual cigarette tax revenue (to be generated by the proposed $2/pack tax in Philly) presumes that legal cigarette sales in Philly will immediately decline by 45%, which is about what I estimate (although that will still require aggressive enforcement of the new tax law by the PA Dept of Revenue, which only had 5 cigarette tax enforcement agents in the entire state last time I talked to them a few years ago).

The financial winners of this tax would be Philly Schools, cigarette retailers located just outside the city limits in 3 adjacent PA counties (Bucks, Montgomery, Delaware), e-cig retailers, and smugglers who will buy low priced cigarette in MO, VA, GA or NC and drive them into Philly for resale.

The financial losers would be cigarette smokers and retailers in Philly (especially cigarette retailers located near the city limits).

Please note that cigarette smuggling is distinctly different than Philly smokers travelling outside the city to buy cigarettes (as the latter tax avoidance would remain legal).

 

[Kent C]

Interestingly, the estimated $80 million in annual cigarette tax revenue (to be generated by the proposed $2/pack tax in Philly) presumes that legal cigarette sales in Philly will immediately decline by 45%, which is about what I estimate.

It would be interesting if there's a way to take a 'snapshot' of ecig sales before and after.

 

[rothenbj]

There's a good number of Philly residents that travel for work into Chester County also.

 

[Bill Godshall]

Philly officials and news media blamed cigarette lobbyists for the failure of PA House and Senate to agree on Philly cigarette tax bill during past week.
Smoke signals: Tobacco lobbyists take advantage of legislative discord
Big Tobacco lobbies hard on Philly cigarette tax

Last Thursday, Gov. Corbett signed the PA budget bill, but line item vetoed expenditures to be given to legislators, resulting in Republican Senate and House leaders criticizing Corbett (also a Republican). Corbett wants legislators to return to Harrisburg to enact pension reform legislation.

 

[DrMA]

Dr. Siegel weighs in on the Philly tax proposal: http://tobaccoanalysis.blogspot.com/2014/07/pennsylvania-legislators-calling-on.html

And this, from the comments:

 

[Bill Godshall]

The GOP controlled PA House has cancelled its scheduled vote next week on the $2/pack Philly cigarette tax, which is causing great distress among Philly officials and Philly legislators (who are Democrats) that are relying on the revenue to balance the budget of Philly Schools.
UPDATE: Cigarette Tax Vote Canceled | News | Philadelphia Magazine
Pa. House Cancels Vote On Cigarette Tax To Help Philadelphia Schools « CBS Philly

Please note that there is no chance of an e-cig tax in PA in 2014.

 

[rothenbj]

I'll bet they could cover that school budgetary issue and work on the childhood obesity epidemic with a $.05 tax on sugar laden sodas and drinks but that would bring outrage.

***edited*** Nope, I was wrong. After looking at average consumption, population and deficit, a $.50 tax per 12 ox soda will be required. However, what the heck, it's for the children! Who could complain?