MA legislation would tax e-cigarettes by redefining them as "smokeless tobacco"

[Bill Godshall]

MA legislature's Joint Committee on Health Care Financing has introduced legislation (H4291) [recommending it be substituted for H2452] that would tax e-cigarettes and dissolvables by redefining "smokeless tobacco" to include

any product containing, made, or derived from tobacco that is intended for human consumption, whether chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means other than smoking, or any component, part, or accessory of a tobacco product.

Bill H.4291
http://www.mass.gov/legis/journal/desktop/Current Agenda 2011/H4291.pdf

H4291 would also exempt FDA approved drug industry NRT tobacco products

"Smokeless tobacco" excludes any tobacco product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product, as a tobacco dependence product, or for other medical purposes, and is being marketed and sold for such an approved purpose.

H4291 also would increase overall smokeless tobacco excise tax by 20% (presumably from 90% to 110% of wholesale price), would increase large cigar tax by 80% (presumably from 30% to 110% of wholesale price), and would increase smoking tobacco tax by 90% (presumably from 30% to 120% of wholesale price).

While Section D of the legislation states

"The final sentence of subsection(a) of section 7C of chapter 64C of the General Laws is hereby amended by striking out the words 'twenty-five per cent' and inserting in place thereof the following words: -- '45 percent'.

there are additional MA excise taxes on smokeless tobacco (besides section 7C of Chapter 64C) as the current excise tax on smokeless tobacco is 90% of wholesale price.
http://www.tobaccofreekids.org/research/factsheets/pdf/0169.pdf

Thus, it appears that H4291 would increase the overall MA smokeless tobacco tax from 90% to 110% of wholesale price, and that's what e-cigarettes and dissolvables would also be taxed.

Since H4291 has been introduced as a substitute amendment to H2452, it appears that H2452
http://www.malegislature.gov/Bills/187/House/H02452/History
(that would have increased cigarette taxes and had different tax rates for smokeless, cigars and smoking tobacco) is no longer valid, although it is still the vehicle bill for H4291.

We should urge the MA Joint Committee on Rules (where H2452 was referred) to oppose H4291 and its predecessor/vehicle bill H2542.

 

[Placebo Effect]

Like the Hawaii e-cig tax bill, this is an issue vapers need to take seriously.

Bill, should correspondence be directed to members of the Committee on Public Service, which is where H.2452 is, urging them not to adopt the amendment suggested in H.4291, and to also oppose the smokeless tax increase in H.2452?

Chapter 64C, Section 1 -- http://law.onecle.com/massachusetts/64c/1.html
Chapter 64C, 7B and 7C -- http://law.onecle.com/massachusetts/64c/7B.html, http://law.onecle.com/massachusetts/64c/7C.html

On a deadline for something work-related at the moment, or else I'd try and do an analysis.

 

[Bill Godshall]

For clarification, here is my description of H2452 from May 17.

MA Joint Committee on Public Health holds legislation (H 2452) until 6/1/12 that would increase cigarette tax from $2.51 to $3.26/pack, increase tax on cigars and smoking tobacco from 30% to 105% of the wholesale price, increase tax on smokeless tobacco from 90% to 135% of the wholesale price, and would allocate revenue to Tobacco Use Reduction and Prevention Fund.
Bill H.2452
Bill Text - H02452

But since H4291 is being introduced as a substitute amendment for H2452, it appears that the text of H2452 is no longer being considered.

 

[Bill Godshall]

According to
Bill H.2452
On July 19, H2452 was

Referred to the committee on Joint committee on Rules with the amendment pending

Typically, Rules committees in State Legislaturesare temporary holding committees (comprised of legislative leaders) that refer bills to other committees (or perhaps to the entire House or Senate) for consideration.

Back in January, 2011, H2452 was originally referred to the House Cmte on Public Service, but the bill has been moved all around the MA legislature since then.

 

[Fiamma]

Bill H.2452
An Act to curtail tobacco addiction and related health care costs

By Mr. Hecht of Watertown, a petition (accompanied by bill, House, No. 2452) of Jonathan Hecht and others for legislation to provide smoking and tobacco use cessation treatment benefits to active and retired public employees. (says the bill header).

So now e cig users are to be taxed to provide smoking and tobacco use cessation treatments for active and retired PUBLIC EMPLOYEES?

What are they doing with the tobacco trust money? Why should people who no longer use burning tobacco be lumped in with everyone else and taxed as if they were still 'part of the problem'.

Why are we expected to fill the trough for the hogs to swill from? This is an election year folks, and some of these people are bound to be standing for re election. Mass vapers, do some research on your own, don't just sit on your hands and wait to see if we are going to get a Call to Action. Votes talk more loudly than anything in an election year. Telling an elected official he may be on the street soon if he persists in this madness has to have an effect.

 

[JENerationX]

Do we have any idea how this would affect e-liquids? If I can buy PG/VG, flavorings, and nicotine, they are not taxing those individually, correct? So when a vendor mixes these individual things up, does that then constitute smokeless tobacco and get taxed as a liquid tobacco product, or are we only going to see this enforced on disposables at the gas station that are pre-assembled and clearly made as a smokeless tobacco product?

 

[Bill Godshall]

The MA Joint Committee on Rules is at
Joint Committee on Rules

It would be helpful if someone compiles contact information for members of the MA Joint Committee on Rules so we can issue action alerts and try mobilizing e-cigarette consumers and vendors in MA.

Since H4291's proposed definition of "smokeless tobacco" also includes " any component, part, or accessory of a tobacco product," its possible that e-cigarette hardware and electronics could also be taxed by the legislation.

Also, it appears (but I'm not certain) that H4291 would result in an overall MA excise tax on e-cigarettes (and dissolvables) of 110% of wholesale price.

 

[Bill Godshall]

I've edited my previous postings on this thread to clarify and correct some previously posted information (that now appears to have been inaccurate, and was confusing).

 

[Fiamma]

The MA Joint Committee on Rules is at
Joint Committee on Rules

--snip

Since H4291's proposed definition of "smokeless tobacco" also includes " any component, part, or accessory of a tobacco product," its possible that e-cigarette hardware and electronics could also be taxed by the legislation.

Also, it appears (but I'm not certain) that H4291 would result in an overall MA excise tax on e-cigarettes (and dissolvables) of 110% of wholesale price.

Taxing everything is exactly what they tried to do in Hawaii. Batteries, cones, atomizer, juice, tanks, everything connected and the proposed tax there was 70%.

 

[Bill Godshall]

While the bill history for H2452 at
Bill H.2452
states that the bill was referred to the Joint Committee on Rules on July 19,
H2452 is not among the many bills listed as currently in the Joint Committee on Rules at
Joint Committee on Rules
with the most recent bill listed referred to the committee on July 20.

H4291 also isn't listed as being considered by Joint Committee on Rules, but it shouldn't be since it is technically a substitute amendment to H2452.

Perhaps it takes several days for the bills to be listed (after they are referred).

 

[Placebo Effect]

I'll work on a list of legislators tomorrow morning.

 

[SpringzVz]

They do this everytime... Start in a small state with little opposition tax it and watch the other states foam at the mouth for revenue and jump on the bandwagon... Mass has the 14th highest tax rate int he country... I guess they are looking to break into the top 10....

 

[Myk]

H4291 would also exempt FDA approved drug industry NRT tobacco products

Ok, that makes sense.

They want everyone to quit smoking *wink wink* and when something comes along that has more than the 93% failure rate of NRT they tax that one but leave the failure untouched.
More big corporate protections from our corporately owned government.

I usually stay out of other state's business but get the contact list for this and I'll be contacting them.

 

[Drew_]

More big corporate protections from our corporately owned government.

And this is exactly our problem; not "big government", or "liberals" as some have suggested, but bad government, corrupted to serve money and power, not you and me.

 

[durgidog]

I wish liquid nic would be synthesized from nightshade plants and zinnias so we avoid this "tobacco product" crap.

 

[TennDave]

I wish liquid nic would be synthesized from nightshade plants and zinnias so we avoid this "tobacco product" crap.

From what I've read, it wouldn't matter- it is the "intention" of use that matters- if it is "intended to be used like a tobacco product", then it gets classified as such.

 

[durgidog]

From what I've read, it wouldn't matter- it is the "intention" of use that matters- if it is "intended to be used like a tobacco product", then it gets classified as such.

Well crap, if that's the thinking then lets classify Mari**** (censored) as a tobacco product, in fact it has small amounts nicotine.

 

[TennDave]

Well, that is already classified as a scheduled drug, so there you go...

 

[Myk]

I wish liquid nic would be synthesized from nightshade plants and zinnias so we avoid this "tobacco product" crap.

I warned about that years ago. People wanted to fight e-cigs being classed as a "tobacco product" because they thought it would save them. (This was before the FDA was given authority over tobacco.)
Even after the FDA got the authority over tobacco it was e-cigs being classed as a tobacco product that kept the FDA from being able to ban them.

If you had nicotine that wasn't a tobacco product and you pushed that fact to keep it from being classified as a tobacco product it would have to be a drug. Even though nicotine isn't classified as a controlled substance that would create a whole bunch of potential problems.
Don't expect the FDA to treat an e-cig like they do NRTs unless a large pharmaceutical company pays them to.

And since this thread is about taxes, tobacco product or not, the only real hope of avoiding big taxes is for studies to prove e-cigs are more effective than NRTs as a smoking cessation device without manufacturers and sellers making that claim.
If that happens no politician will tax a cessation device after spending their careers demonizing smokers so they can tax them.

 

[Placebo Effect]

As promised, here is the list of Senators and Reps on the Joint Committee on Rules. Please e-mail them and note your strong opposition to H2452 because it would senselessly open up a whole new class of tobacco products to taxation despite no evidence of harm to the user, and a whole slew of evidence that it is helping millions of Americans quit smoking.

----

Senate Members



Frederick E. Berry (Senate Chair) (D)

Phone: 617-722-1410

Fax: 617-722-1347

Email: Frederick.Berry@masenate.gov



Karen Spilka (Senate Vice Chair) (D)
Phone: 617-722-1640

Fax: 617-722-1077

Email: Karen.Spilka@masenate.gov



Stephen M. Brewer (D)

Phone: 617-722-1540

Fax: 617-722-1078

Email: Stephen.Brewer@masenate.gov



Steven A. Tolman (D)

Phone: 617-722-1280

Email: Steven.Tolman@masenate.gov



Michael R. Knapik (R)

Phone: 617-722-1415

Fax: 617-722-1506
Email: Michael.Knapik@masenate.gov

Richard J. Ross (R)

Phone: 617-722-1555

Fax: 617-722-1054

Email: Richard.Ross@masenate.gov

House Members



John J. Binienda (House Chair) (D)

Phone: 617-722-2692

Fax: 617-722-2822

Email: John.Binienda@mahouse.gov


Cory Atkins (House Vice Chair) (D)

Phone: 617-722-2692

Fax: 617-722-2822

Email: Cory.Atkins@mahouse.gov



Byron Rushing (D)

Phone: 617-722-2783

Fax: 617-722-2238

Email: Byron.Rushing@mahouse.gov



Thomas M. Petrolati (D)

Phone: 617-722-2255

Fax: 617-722-2846

Email: Thomas.Petrolati@mahouse.gov



Ronald Mariano (D)

Phone: 617-722-2300

Fax: 617-722-2750

Email: Ronald.Mariano@mahouse.gov



Ellen Story (D)

Phone: 617-722-2012

Fax: 617-570-6577

Email: Ellen.Story@mahouse.gov



Eugene L. O'Flaherty (D)

Phone: 617-722-2396

Fax: 617-722-2819

Email: Gene.O'Flaherty@mahouse.gov



David M. Nangle (D)

Phone: 617-722-2575

Fax: 617-722-2215

Email: David.Nangle@mahouse.gov



Kathi-Anne Reinstein (D)

Phone: 617-722-2180

Email: KathiAnne.Reinstein@mahouse.gov



Garrett J. Bradley (D)

Phone: 617-722-2520

Email: Garrett.Bradley@mahouse.gov



Patricia A. Haddad (D)
Phone: 617-722-2600
Fax: 617-722-2313
Email: Patricia.Haddad@mahouse.gov

John V. Fernandes (D)
Phone: 617-722-2396
Fax: 617-626-0706
Email: John.Fernandes@mahouse.gov

Donald F. Humason, Jr (R)
Phone: 617-722-2803
Fax: 617-722-2390
Email: Donald.Humason@mahouse.gov

Paul K. Frost (R)
Phone: 617-722-2489
Email: Paul.Frost@mahouse.gov

Geoffrey G. Diehl (R)
Phone: 617-722-2810
Email: Geoff.Diehl@mahouse.gov



Comma-delimited e-mail list:

frederick.berry@masenate.gov, karen.spilka@masenate.gov, stephen.brewer@masenate.gov, steven.tolman@masenate.gov, michael.knapik@masenate.gov, richard.ross@masenate.gov, john.binienda@mahouse.gov, cory.atkins@mahouse.gov, byron.rushing@mahouse.gov, thomas.petrolati@mahouse.gov, ronald.mariano@mahouse.gov, ellen.story@mahouse.gov, flaherty@mahouse.gov, david.nangle@mahouse.gov, kathianne.reinstein@mahouse.gov, garrett.bradley@mahouse.gov, patricia.haddad@mahouse.gov, john.fernandes@mahouse.gov, donald.humason@mahouse.gov, paul.frost@mahouse.gov, geoff.diehl@mahouse.gov

Semicolon-delimited e-mail list:

frederick.berry@masenate.gov; karen.spilka@masenate.gov; stephen.brewer@masenate.gov; steven.tolman@masenate.gov; michael.knapik@masenate.gov; richard.ross@masenate.gov; john.binienda@mahouse.gov; cory.atkins@mahouse.gov; byron.rushing@mahouse.gov; thomas.petrolati@mahouse.gov; ronald.mariano@mahouse.gov; ellen.story@mahouse.gov; flaherty@mahouse.gov; david.nangle@mahouse.gov; kathianne.reinstein@mahouse.gov; garrett.bradley@mahouse.gov; patricia.haddad@mahouse.gov; john.fernandes@mahouse.gov; donald.humason@mahouse.gov; paul.frost@mahouse.gov; geoff.diehl@mahouse.gov