MA House/Senate leaders to propose $1/pack cig tax hike, OTP tax hike on Tuesday (don't know if e-cigs included)

[Bill Godshall]

STATE HOUSE NEWS: Legislative leaders propose increases in gas, cigarette taxes - News - Randolph, MA - Randolph Herald

We'll need to find out if this will apply to e-cigarettes (as if it does, its likely to be at least a 90% tax, which is the current OTP tax).

 

[Bill Godshall]

The MA tax bill passed by the House (articles below) would increase the cigarette tax by 40% (from $2.51 to $3.51/pack), and a contact at Altria (Philip Morris) informed me that it would increase the tax on smokeless tobacco tax products by 233% (from 90% to 210% of wholesales price). The legislation would also increase the tax on cigars and pipe tobacco from 30% to 40% of wholesale price.

Altria has stated that if enacted, this tax hike would increase the average cost of moist snuff to $11.86 per can, which is higher than what a pack of cigarette would cost, which would encourage some smokeless tobacco users to switch to far more hazardous cigarettes (to save money).

The MA Senate is expected to consider the legislation on Friday. So it would be helpful if lots of MA residents urged their Senator to oppose taxing smokeless tobacco at a significantly greater level than far more hazardous cigarettes.

MA House approves $500 million tax plan, 97-55
BEACON HILL ROLL CALL: House approves $500M tax hike plan, 97-55 - This Just In - Fall River, MA - The Herald News

MA House votes for $500 million tax increase
Massachusetts House of Representatives votes for $500 million tax increase, including hike in gas, cigarette taxes | masslive.com

 

[Bill Godshall]

The MA tobacco tax increase bill is H 3382 at
Bill H.3382

The text of the bill states that the legislation would raise the smokeless tobacco tax from 90% to 160% (not 210%).

SECTION 20. Said section 6 of said chapter 64C, as so appearing, is hereby further amended by striking out the second paragraph and inserting in place thereof the following paragraph:-

Notwithstanding the other provisions of this section, the excise imposed by this section shall equal 160 per cent of the price paid by such licensee or unclassified acquirer to purchase smokeless tobacco so sold, imported, or acquired.

None of the amendments to H 3382 (that were approved) would have raised the smokeless tobacco tax to 210%.

 

[Bill Godshall]

Please ignore my post immediataly above this one, as H 3382 would increase the overall smokeless tobacco excise tax to 210% (not to 160%).

The current excise tax for smokeless tobacco in MA is 90%. The excise tax portion is separated into three sections of the code.

64C § 6 = smokeless tobacco is 40%

64C § 7A = 25%

64C § 7C = 25%


By raising the 40% tax (in subsection 6 of 64C) to 160%, H 3382 would raise the overall smokeless tobacco excise tax by 120% (from 90% to 210%).

 

[Bill Godshall]

While H 3382 would tax a tax cigarettes at $3.51 per pack, it would tax far less hazardous premium Skoal and Copenhagen smokeless tobacco products at $5.50 per can, which could cause some smokeless tobacco users to switch to far more hazardous cigarettes.

 

[Bill Godshall]

Please urge MA Senators to reject the tobacco tax legislation (H 3382) because:
- it unfairly and punitively taxes smokeless tobacco products at a significantly higher rate than far more hazardous cigarettes,
- it would cause some smokeless tobacco users to switch to far more hazardous cigarettes (to save money),
- smokeless tobacco users already pay far more in excise tax revenue than MA spends to treat diseases caused by smokeless tobacco,
- cigarette smokers already pay more in excise tax revenue and MSA payments than MA spends to treat diseases caused by smoking,
- it would significantly increase tobacco smuggling and cross border sales, and
- it won't bring in nearly as much new tax revenue as proponents claim.

Please contact MA Senators before Saturday morning because the MA Senate is expected to vote on the legislation on Saturday.

Below are e-mails for MA Senators

Therese.Murray@masenate.gov, Bruce.Tarr@masenate.gov, Mike.Barrett@masenate.gov, Stephen.Brewer@masenate.gov, William.Brownsberger@masenate.gov, Gale.Candaras@masenate.gov, Harriette.Chandler@masenate.gov, Sonia.Chang-Diaz@masenate.gov, Katherine.Clark@masenate.gov, Cynthia.Creem@masenate.gov, Sal.DiDomenico@masenate.gov, Kenneth.Donnelly@masenate.gov, Eileen.Donoghue@masenate.gov, Benjamin.Downing@masenate.gov, James.Eldridge@masenate.gov, Barry.Finegold@masenate.gov, Jennifer.Flanagan@masenate.gov, Robert.Hedlund@masenate.gov, Patricia.Jehlen@masenate.gov, Brian.A.Joyce@masenate.gov, John.Keenan@masenate.gov, Thomas.P.Kennedy@masenate.gov, Michael.Knapik@masenate.gov, Joan.Lovely@masenate.gov, Thomas.McGee@masenate.gov, Mark.Montigny@masenate.gov, Michael.Moore@masenate.gov, Richard.Moore@masenate.gov, Kathleen.OconnorIves@masenate.gov, Marc.Pacheco@masenate.gov, Anthony.Petruccelli@masenate.gov, Michael.Rodrigues@masenate.gov, Stan.Rosenberg@masenate.gov, Richard.Ross@masenate.gov, Mike.Rush@masenate.gov, Karen.Spilka@masenate.gov, Bruce.Tarr@masenate.gov, James.Timilty@masenate.gov, James.Welch@masenate.gov, Daniel.Wolf@masenate.gov

 

[Bill Godshall]

I sent the following e-mail to all MA Senators


Subject: Reject bill to tax smokeless tobacco at greater rate than far more hazardous cigarettes

Please amend or reject the tobacco tax legislation (H 3382) because it
would:

- unfairly and punitively tax smokeless tobacco products at a
significantly higher rate than far more hazardous cigarettes (i.e.
$5.50/can tax on premium snuff versus $3.51/pack tax on cigarettes).

- cause some smokeless tobacco users to switch to far more hazardous
cigarettes (to save money),

- significantly increase tobacco smuggling and cross border sales, and

- generate far less tax revenue than proponents claim.

Smokeless tobacco products are 99% less hazardous than cigarettes, and
several million smokers in America have already quit smoking by
switching to smokeless tobacco.

Cigarette smoking causes >99% of all tobacco attributable diseases,
deaths and healthcare costs.

Smokeless tobacco users already pay far more in excise tax revenue than
the Commonwealth of MA spends to treat diseases caused by smokeless
tobacco, while cigarette smokers already pay as much in excise tax
revenue and Master Settlement Agreement payments than the Commonwealth
of MA spends to treat diseases caused by smoking.

Please reject this punitive tax proposal that would increase crime and
poverty, while doing little if anything to improve public health.

Bill Godshall
Executive Director
Smokefree Pennsylvania
1926 Monongahela Avenue
Pittsburgh, PA 15218
412-351-5880
smokefree@compuserve.com

 

[Bill Godshall]

The MA Senate approved the transportation bill that will sharply increase cigarette and smokeless tobacco tax rates
STATEHOUSE NEWS Senate adopts $500 mil tax plan - News - Malden, Massachusetts - Malden Observer

CTFK was lobbying to amend the bill to further increase cigar tax rates, but don't know if it was approved by the MA Senate.
Senator's tax amendment would increase price of cigars in Massachusetts | masslive.com

 

[Bill Godshall]

The MA House and Senate approve transportation legislation that was reported out of a House/Senate Conference Cmte (H 3535) to increase cigarette tax by $1/pack, don't know about OTP tax rates, but it doesn't tax e-cigs. Bill goes to Governor Patrick, who previously expressed opposition because (he said) it didn't raise enough new tax revenue.
https://malegislature.gov/Bills/188/House/H3535/History

Near end of bill.

SECTION 72. A manufacturer, wholesaler, vending machine operator, unclassified acquirer or retailer, as defined in section 1 of chapter 64C of the General Laws, and a stamper appointed by the commissioner under section 30 of said chapter 64C who, as of the commencement of business 7 days after the effective date of this act, has on hand any cigarettes for sale or any unused adhesive or encrypted stamps, shall make and file with the commissioner within 20 days a return, subscribed and sworn to under the penalties of perjury, showing a complete inventory of such cigarettes and stamps and shall, at the time such manufacturer, wholesaler, vending machine operator, unclassified acquirer, retailer or stamper is required to file such return, pay an additional excise of 50 mills per cigarette on all cigarettes and all unused adhesive and encrypted stamps upon which an excise of only 100½ mills has previously been paid. Chapters 62C of the General Laws and 64C of the General Laws relative to the assessment, collection, payment, abatement, verification and administration of taxes, including penalties, shall apply to the excise imposed by this section.

 

[Bill Godshall]

Here's an article about the legislation, but no mention of OTP tax hike in bill.
Mass. Gov. to seek change in transportation bill - News Local Massachusetts - Boston.com

There's an article in the Boston Globe, but only paid subscribers can access.

 

[szot]

Mass has another SB and HB 2593 in the works that directly legislates Ecigs...the transportation bill is another issue all together..

 

[Bill Godshall]

If the MA legislature enacts the transportation bill, it appears that HB 2593 would need to be amended (to incorporate the new tax rate for smokeless tobacco, and to appropriate additional revenue).

 

[AgentAnia]

Is anything happening with Bill H.3397, "An Act to study the use of harm reduction"?

https://malegislature.gov/Bills/188/House/H3397

 

[Bill Godshall]

Is anything happening with Bill H.3397, "An Act to study the use of harm reduction"?

A hearing was scheduled back in May, but no action has been taken on the bill.

I'd be shocked if this bill is approved by the MA House Public Health Committee, especially if legislators have been informed that RJ Reynolds is sponsoring the measure.

 

[Bill Godshall]

MA legislature enacts law to increase cigarette tax by $1/pack (from $2.51 to $3.51), increase smokeless tobacco tax by 120% (from 90% to 210%), increase cigar and smoking tobacco tax by 10% (from 30% to 40%).
https://malegislature.gov/Bills/188/House/H3535


The good news is that this bill doesn't tax e-cigs, and enactment of this bill should reduce the likelihood they'll approve H2593 (that would tax e-cigs), as even liberal Democrats in MA don't like multiple tax battles in the same year.

Interestingly, MA's tax on smokeless tobacco is now significantly higher than MA's tax on cigarettes (even though cigarettes are 100 times more hazardous than smokeless tobacco). Seems like MA legislators want smokeless tobacco users to switch to cigarettes.

 

[Placebo Effect]

Yes, and as we experienced in Maryland, legislators don't tend to increase tobacco taxes two years in a row. Although if there is one state that will be the exception to the rule, it may be Mass.

210% is just insane. That's just another argument for NOT classifying e-cigs as OTP in Massachusetts, as the tax would impact disposables e-cigs more than it does smokeless.

 

[szot]

hmmm...H3535 , better known as the Transportation bill was vetoed weeks ago by Governor Patrick, when it was added to the state budget for proposal...the rest of the budget was approved but without this H3535 transportation bill...... and as of this writing, NOT 1 word of an override by the Mass legislature has been written or announced by any media...I have not seen 1 word of any enactment by the state legislature of 3535..and 3535 has nothing to do with Ecigs...Ecigs is in another bill 2593 as I previously mentioned, and has had NO action taken on it....

 

[Bill Godshall]

Governor Patrick vetoed H3535 on Friday.
https://malegislature.gov/Bills/188/House/H3535

Cannot locate his veto message on the website, but he probably said the bill wouldn't generate as much tax revenue as he wants.

 

[szot]

He vetoed the transportation bill because it increases tolls and adds new tolls on the Mass Turnpike which is required by previous passed legislation to be toll free in 2017...he prefers a gasoline tax increase..

 

[Bill Godshall]

MA legislature soundly overrides Gov. Patrick’s veto of transportation bill, tobacco tax hikes
Mass. lawmakers override transportation veto - News Local Massachusetts - Boston.com

The House voted 123-33 to override Patrick’s veto. The Senate voted 35-5 to override.