can someone explain chapter IX section 919 to me?

[nathkiira]

can anyone explain this to me? i'm wondering if this is per business or for the entire industry. ..if its per business ..omfg


"‘SEC. 919. USER FEES.
‘(a) Establishment of Quarterly Fee- Beginning on the date of enactment of the Family Smoking Prevention and tobacco Control Act, the Secretary shall in accordance with this section assess user fees on, and collect such fees from, each manufacturer and importer of tobacco products subject to this chapter. The fees shall be assessed and collected with respect to each quarter of each fiscal year, and the total amount assessed and collected for a fiscal year shall be the amount specified in subsection (b)(1) for such year, subject to subsection (c).
‘(b) Assessment of User Fee-
‘(1) AMOUNT OF ASSESSMENT- The total amount of user fees authorized to be assessed and collected under subsection (a) for a fiscal year is the following, as applicable to the fiscal year involved:
‘(A) For fiscal year 2009, $85,000,000 (subject to subsection (e)).
‘(B) For fiscal year 2010, $235,000,000.
‘(C) For fiscal year 2011, $450,000,000.
‘(D) For fiscal year 2012, $477,000,000.
‘(E) For fiscal year 2013, $505,000,000.
‘(F) For fiscal year 2014, $534,000,000.
‘(G) For fiscal year 2015, $566,000,000.
‘(H) For fiscal year 2016, $599,000,000.
‘(I) For fiscal year 2017, $635,000,000.
‘(J) For fiscal year 2018, $672,000,000.
‘(K) For fiscal year 2019 and each subsequent fiscal year, $712,000,000."

 

[daPorkchop]

http://smokingcessationleadership.ucsf.edu/webinar_28_fda_factsheet_cigars_6072012.pdf

Page 5 is where this starts for cigars. It's easier to read the way they typed it out.

I believe, the total fees are divvied through all of the manufactures and importers of all tobacco products. The purpose of this is to pay the FDA for the cost of them regulating everything. Like in that chart on the pdf link, it says the cigar allocation is 9.13%. So, for e-cigs, they haven't allocated it yet.

I've attached the class allocation of taxes from the USDA. It is where the smoking cessation leadership says they got their info from for the class allocation.

View attachment class_allocations_13.xls

Made it in a table for fiscal 2013 if ya didn't wanna download or see the whole thing.

2011 Calendar year (for fiscal year 2013)

Class of tobacco	Domestic (# or lbs)	Imports (# or lbs)	Total quantity (# or lbs)	Maximum tax rate	Estimated taxes (total quantity times tax rate)	Allocation by class (percent)
Cigarettes: small (#)	286,352,524,912	6,416,560,000	292,769,084,912	$19.50/thou	$5,708,997,156	88.4990
Cigars: small (#)	753,869,895	44,308,000	798,177,895	$1.828/thou	$1,459,069	0.0226
Cigars: large (#)	9,997,562,563	2,931,540,000	12,929,102,563	$48.75/thou	$630,293,750	9.7706
Cigars: total (#)	10,751,432,458	2,975,848,000	13,727,280,458		$631,752,819	9.7932
Snuff (lbs)	103,097,456	464,519	103,561,975	$0.585/lb	$60,583,755	0.9391
Chewing tobacco (lbs)	24,636,069	164,463	24,800,532	$0.195/lb	$4,836,104	0.0749
Pipe tobacco (lbs)	32,840,212	2,624,062	35,464,274	$1.0969/lb	$38,900,762	0.6030
Roll your own (lbs)	4,899,513	425,592	5,325,105	$1.0969/lb	$5,841,108	0.0905
Total					$6,450,911,704	99.9997

 

[nathkiira]

http://smokingcessationleadership.ucsf.edu/webinar_28_fda_factsheet_cigars_6072012.pdf

Page 5 is where this starts for cigars. It's easier to read the way they typed it out.

I believe, the total fees are divvied through all of the manufactures and importers of all tobacco products. The purpose of this is to pay the FDA for the cost of them regulating everything. Like in that chart on the pdf link, it says the cigar allocation is 9.13%. So, for e-cigs, they haven't allocated it yet.

I've attached the class allocation of taxes from the USDA. It is where the smoking cessation leadership says they got their info from for the class allocation.

View attachment 172850

Made it in a table for fiscal 2013 if ya didn't wanna download or see the whole thing.

2011 Calendar year (for fiscal year 2013)

Class of tobacco	Domestic (# or lbs)	Imports (# or lbs)	Total quantity (# or lbs)	Maximum tax rate	Estimated taxes (total quantity times tax rate)	Allocation by class (percent)
Cigarettes: small (#)	286,352,524,912	6,416,560,000	292,769,084,912	$19.50/thou	$5,708,997,156	88.4990
Cigars: small (#)	753,869,895	44,308,000	798,177,895	$1.828/thou	$1,459,069	0.0226
Cigars: large (#)	9,997,562,563	2,931,540,000	12,929,102,563	$48.75/thou	$630,293,750	9.7706
Cigars: total (#)	10,751,432,458	2,975,848,000	13,727,280,458		$631,752,819	9.7932
Snuff (lbs)	103,097,456	464,519	103,561,975	$0.585/lb	$60,583,755	0.9391
Chewing tobacco (lbs)	24,636,069	164,463	24,800,532	$0.195/lb	$4,836,104	0.0749
Pipe tobacco (lbs)	32,840,212	2,624,062	35,464,274	$1.0969/lb	$38,900,762	0.6030
Roll your own (lbs)	4,899,513	425,592	5,325,105	$1.0969/lb	$5,841,108	0.0905
Total					$6,450,911,704	99.9997

ty ..that makes more sense =)

 

[Unc1987]

so theyll be assessing fees and collecting upwards of a billion dollars near 2020??