- Apr 2, 2009
- 5,171
- 13,288
- 67
Illinois legislators increase cigarette tax (from $.98 to $1.98/pack), change moist snuff tax (from 18% of wholesale price to $.30/ounce), double Other tobacco Products tax (from 18% to 36% of wholesale price).
Illinois General Assembly - Bill Status for SB2194
Illinois cigarette tax raised by $1 a pack - Chicago Tribune
This is a victory for tobacco harm reduction since there's still no e-cigarette tax and the tax rate on moist snuff was changed slightly from 18% of wholesale price to $.30/ounce. By changing the moist snuff tax from a 18% ad valorem tax rate to a modest weight based tax of $.30/ounce, the moist snuff tax rate will remain about the same for Philip Morris brands Skoal and Copenhagen, while increasing somewhat for Reynolds' discount brand Grizzly.
Please note that most moist snuff cans contain 1.2 ounces, and that PM's Skoal and Copenhagen brands typically cost twice as much as Reynolds' discount brand Grizzly. Since PM's Skoal and Copenhagen typically cost twice as much as Reynolds' Grizzly, PM's moist snuff brands are taxed at twice the rate of Reynolds leading brand in states that tax moist snuff ad valorem (as a % of price).
That's why PM has been lobbying state legislatures with ad valorem tax rates for moist snuff to change it to a weight based tax rate (so that the tax on a can of Skoal and Copenhagen is the same as the tax on a can of Grizzly). I've also supported taxing moist snuff by weight instead of by price because it is a fairer tax. Since Skoal and Copenhagen are the leading moist snuff brands that smokers have been substituting for cigarettes, CTFK/ACS/AHA/ALA have been lobbying state legislators to tax moist snuff as a % of price (in another attempt to prevent smokers from substituting smokeless for cigarettes).
During the past five or six years, PM has convinced about six state legislatures to change from ad valorem to weight based taxation.
Illinois General Assembly - Bill Status for SB2194
Illinois cigarette tax raised by $1 a pack - Chicago Tribune
This is a victory for tobacco harm reduction since there's still no e-cigarette tax and the tax rate on moist snuff was changed slightly from 18% of wholesale price to $.30/ounce. By changing the moist snuff tax from a 18% ad valorem tax rate to a modest weight based tax of $.30/ounce, the moist snuff tax rate will remain about the same for Philip Morris brands Skoal and Copenhagen, while increasing somewhat for Reynolds' discount brand Grizzly.
Please note that most moist snuff cans contain 1.2 ounces, and that PM's Skoal and Copenhagen brands typically cost twice as much as Reynolds' discount brand Grizzly. Since PM's Skoal and Copenhagen typically cost twice as much as Reynolds' Grizzly, PM's moist snuff brands are taxed at twice the rate of Reynolds leading brand in states that tax moist snuff ad valorem (as a % of price).
That's why PM has been lobbying state legislatures with ad valorem tax rates for moist snuff to change it to a weight based tax rate (so that the tax on a can of Skoal and Copenhagen is the same as the tax on a can of Grizzly). I've also supported taxing moist snuff by weight instead of by price because it is a fairer tax. Since Skoal and Copenhagen are the leading moist snuff brands that smokers have been substituting for cigarettes, CTFK/ACS/AHA/ALA have been lobbying state legislators to tax moist snuff as a % of price (in another attempt to prevent smokers from substituting smokeless for cigarettes).
During the past five or six years, PM has convinced about six state legislatures to change from ad valorem to weight based taxation.
Last edited:
