That non profit i was telling you about, they are particularly focused on California municipalities (see my posts in the two Washington State ban threads). AFTER they get them banned (like in King County, the largest metropolitan population in the state), THEN they try to tax it under the MSA to support the TSA.
Quick review, in 1998 the states won a settlement against Big Tobacco, the states are to receive billions over 25 years. Many states, California one of the leaders, banked on their large populations to keep smoking (since the dollars from the tobacco companies were to support quit smoking and Medicaid tobacco ailments). They sell the future rights for the next 20 years about (in our state, I think it was Chris Gregoire leading the way), in the form of Bonds. These munis were classed as A+ and higher. They were also backed by the sin taxes for cigs (in order to keep up the appearance of leading the way in quit smoking efforts, which lasted about 3 years in our state). Fast forward to now. Those muni bonds are classed as Junk. Small print in the 1998 law, as smokers dwindled, so do tobacco payments, even to the point of NO payments if too few smokers. LARGE drop in smokers, as the recession takes all that money the states acquired, and they raise the SIN taxes. OMGZ, we can't afford to have people quit. But everyone is doing the ecig thing, and we only get sales tax, that won't pay the increased interest on those munis from lounging down ti junk status.
This non-profit is receiving government grants it shouldn't, the purpose of which is to classify ecigs under the MSA, as tobacco. This allows the states to recoup money from the tobacco companies. The growth prospect for ecig use is 150%+ over the next 4 years (closer to 190%, according to Wells Fargo analysts). The steps outlined via PowerPoint presentations, get ecigs banned first, get them viewed the same as cigarettes. Make them part of the clean air door act in California. Then, tax them. But not a normal sin tax, that won't work. They MUST be classified under the MSA, or no tobacco money.
See where this is going? Now, I don't necessarily mind the clean air door thing in King County, though you can vape in your non-smoking apartment, and after 4 years, enforcement doesn't even seem to be a priority anymore (just don't push it in a crowded bus). BUT, we were strong enough to stop the reclassification to MSA. Are you THAT strong enough for a state as large as California?
PS, the only way the tobacco companies can pay new revenue when there smoking coffers are diminishing, buy ecig companies. Since lorillard has been in the game awhile, think how long this has been generating (2009 to 2010?)
