Omaha (NE) City Council considers imposing 7% occupational tax on tobacco retailers (including e-cigarettes)

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Bill Godshall

Executive Director<br/> Smokefree Pennsylvania
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Vocalek

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I wonder why it is that legislators think that they can make up any nonsense they want to support their power, control, and dominance over others.

"This City Council further finds that the diseases and health hazards causally connected to the use of tobacco products adversely effect the economic vitality of the city, its citizens, and taxpayers in many ways, including lost employment opportunities, decreased productivity and compensation, and increased expenses for medical care that take away discretionary spending that generates tax revenue and enhances quality of life in the city."

Whew! That is all one sentence! "Causally connected to..."? Who says things like that, when a simple "caused by" will do? Or do they know that many people now understand that there ARE no diseases and health hazards caused by the use of smoke-free types of tobacco products? Saying "caused by" would make it obvious that they are not telling the truth, but "causally connected to" might be taken to mean that there is (or could be) some type of indirect connection.

And if we take away the excuse of (all) tobacco products causing diseases and health hazards, then all the rest of that shopping list of negative economic consequences iterated in the remainder of the sentence and most of the rest of the paragraph become moot.

But for that matter, even if there were some health hazards associated with non-combusted tobacco products, its a real stretch to claim that Joe Blow's bronchitis is driving away new businesses and job opportunities.

For heaven's sakes! Who do these city legislators think they are? Scientists?

I also love that they are shifting away focus from the fact that this law will impose a large tax on the consumers. They talk about how persons who engage in the occupation that benefits from the sale will bear a greater proportionate share of the burden.

In other words, they try to pretend that the owners of such shops will absorb the extra expense and not pass it on to the consumer. Yup. Sure. When Wilbur grows wings.

wilbur the pig - Bing

And finally, why are they selecting only the mom and pop shops for this penalty (ooops, I meant to say "fair sharing of the just, proper, and equitable distribution of tax burdens")? Are they claiming that chain stores such as 7-11, Exxon, Shell, CVS, Rexall, Walmart, Giant, and Piggly Wiggly do not receive any benefit from their sales of tobacco products?

And as previously pointed out, it will be consumers at these small businesses who end up paying the higher prices to cover the tax. When they get tired of being the fall-guy, they will take their business to a chain store and put the small businesses out of business.
 
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Vocalek

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That smells like a Letter to the Editor to me.

How about a letter going to the Mayor, City Attorney, Deputy City Attorney (who authored the proposed ordinance), City Clerk, and 7 City Council Members?

ATTENTION Omaha area residents and business owners: There will be a public hearing on the ordinance on Tuesday, Sept. 25 at City Hall. A gazillion letters from CASAA will not do as much good as a couple of folks who will be directly affected by this legislation showing up in person to speak out against it. If you can't go in person, you can use the city's form to submit an email message of your own here: Omaha City Clerk - Contact Us

CASAA's letter, faxed and submitted via the email form:

September 21, 2012

City of Omaha officials:
Mayor Jim Suttle (FAX: 402-444-6059)
Paul D. Krantz, City Attorney (FAX: 402-444-5125)
Thomas O. Mumgaard, Deputy City Attorney (FAX: 402-444-5125)
Buster Brown, City Clerk (FAX: 402-444-5263)
City Council Members:
District 1: Pete Festersen
District 2: Ben Gray
District 3: Chris Jerram
District 4: Garry Gernandt
District 5: Jean Stothert
District 6: Franklin Thompson
District 7: Thomas Mulligan

Dear Omaha City Council Members and Officials:

The Consumer Advocates for Smoke-free Alternatives Association (CASAA) encourages the City Council of Omaha to correct scientifically inaccurate information in the proposed ordinance to amend Chapter 12, Article VII of the Omaha Municipal Code pertaining to the sale of tobacco products. Once this has been accomplished, it will become evident that, as currently structured, the proposed ordinance will endanger the physical health of citizens and damage the economic health of the city.

Section 12-135(a), Findings and Intent, fails to acknowledge the scientific evidence that cigarettes are by far the most hazardous type of tobacco product. Cigarettes are burned and inhaled, which makes them far more harmful than tobacco and nicotine products that do not produce lung-damaging, carcinogenic smoke.

A 2007 report by the Royal College of Physicians noted that a large percentage of smokers may never be able to give up all use of nicotine.(1) The practice of substituting a low-risk nicotine product for smoking is called Tobacco Harm Reduction (THR). Such low risk products include smokeless tobacco products, electronic cigarettes, and long-term use of Nicotine Replacement Therapy (NRT) products.(2) Rather than treat all tobacco products as equally dangerous, politicians and health care advocates should embrace THR. For those who are unable or unwilling to completely quit tobacco and/or nicotine use, switching to a smokeless alternative can achieve substantial health benefits, with many such products carrying less than 1 to 2% of the risk posed by smoking.

During the past several decades, millions of Swedish smokers switched to snus, a type of spit-free moist snuff. As a result, adult daily smoking (age 15 and older) has dropped to 12% for men and 17% for women, which represent reductions of 44% and 29%, respectively, between 1995 and 2008.(3) Not coincidentally, Sweden has the lowest lung cancer mortality rate in the European Union.(4)

In a 2010 FDA workshop, Dr. Neal Benowitz reviewed the scientific evidence on the health benefits of switching to smokeless tobacco (ST) products as proof that NRT would be safe for long-term use. His presentation noted, “The lack of increase in common cancers in lifelong ST users indicates that nicotine is not a general cancer promoter,” and “studies indicate minimal if any increased CV risks (i.e., heart attacks and strokes) with ST.”(5)

The Omaha City Council needs to revise the description of health risks and economic impacts in Section 12-135(b), Findings and Intent, to reflect the fact that there are no increased costs to the City or to Omaha’s private employers related to the use of smoke-free alternatives. Furthermore, the proposed ordinance may actually result in unintended consequences: reducing the City’s revenue and increasing the health risks of its citizens.

Higher prices on all tobacco products may result in closure of Omaha’s tobacco specialty stores, e-cigarette vendors, and other small businesses as consumers seek lower prices outside the city. It may also result in continued smoking among those who might have switched to a lower-risk product if those products had remained conveniently available and affordable on a local level.

CASAA urges the Omaha City Council to revise the proposed ordinance so as to achieve the stated purpose of just, proper, and equitable distribution of tax burdens within the city. If this cannot be accomplished, the ordinance should be tabled altogether because, as structured, it stands to do more harm than good.

CASAA is a non-profit organization that works to ensure the availability of low-risk alternatives to smoking and to provide the public with truthful information about such alternatives. Please feel free to contact us if you require any additional scientific information on relative risks of various tobacco and nicotine products.

Sincerely,



Elaine Keller, President ekeller@casaa.org
The Consumer Advocates for Smoke-free Alternatives Association
CASAA - The Consumer Advocates for Smoke-free Alternatives Association
(202) 241-9117

----------------------
1. Royal College of Physicians. Harm reduction in nicotine addiction: helping people who can’t quit. A report by the Tobacco Advisory Group of the Royal College of Physicians. London: RCP, 2007. http://www.tobaccoprogram.org/pdf/4fc74817-64c5-4105-951e-38239b09c5db.pdf
2. Rodu B. The scientific foundation for tobacco harm reduction, 2006-2011. Harm Reduct J. 2011 Jul 29;8:19. The scientific foundation for tobacco harm reduction, 2006-2011
3. OECD/European Union (2010), “Tobacco Consumption among Adults”, in Health at a Glance: Europe 2010, OECD Publishing. Tobacco Consumption among Adults - Health at a Glance: Europe 2010 - OECD iLibrary
4. OECD/European Union (2010), “Mortality from Cancer”, in Health at a Glance: Europe 2010, OECD Publishing. Mortality from Cancer - Health at a Glance: Europe 2010 - OECD iLibrary
5. Benowitz N. Smokeless Tobacco and Disease: Evidence Related to Long-term Safety of Nicotine. http://www.fda.gov/downloads/Drugs/NewsEvents/UCM232147.pdf
 

Vocalek

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Supporting Member
ECF Veteran
I had trouble opening up (on Firefox browser) the Agenda for the Sept. 25 meeting that will have public hearing on the measure. I was able to open the link on Internet Explorer 9 browser, and others were able to open the link in Google Chrome.

Just in case, here is a copy that can be downloaded.

View attachment a12-09-25 Omaha agenda.pdf

The meeting is at city hall and starts at 2 pm. The ordinance is #37 on the agenda. Note that #38 is the Interlocal Agreement with the Board of Regents of the University of Nebraska to provide funding for their new cancer center. Link: http://www.cityofomaha.org/cityclerk/images/stories/agenda/ID 12_09_25/City Council/1284.pdf

The last WHEREAS statement on page 4 of 6 of the Interlocal Agreement specifies the new "Occupation Tax" that will be used to provide payments to the university.
 

DC2

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ATTENTION Omaha area residents and business owners: There will be a public hearing on the ordinance on Tuesday, Sept. 25 at City Hall. A gazillion letters from CASAA will not do as much good as a couple of folks who will be directly affected by this legislation showing up in person to speak out against it. If you can't go in person, you can use the city's form to submit an email message of your own here: Omaha City Clerk - Contact Us
As I read this I sit here and wonder how many people in Omaha have even seen this thread.
 

Vocalek

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This is interesting:

Heineman criticizes NU for seeking extra government funds for cancer center - Omaha.com

Gov. Dave Heineman says University of Nebraska officials are changing their tune on funding for a $370 million cancer research and treatment center as it turns to the City of Omaha and Douglas County for money.

Heineman told The World-Herald that NU President J.B. Milliken, as he sought a $50 million commitment from the state, never indicated the university would seek additional local government funds for the project.

The governor on Thursday criticized Douglas County for committing $5 million in inheritance tax revenue for the University of Nebraska Medical Center project. And Heineman said Milliken should “explain what's going on” to the Omaha City Council as it considers a new cigarette tax to pump $35 million into the project.
 

Blurgas

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I don't keep up on the politics(if I tried, I'm sure my head would have exploded long ago), but I try to keep up on the science
I have found that when it comes to nicotine, science has yet to be able to determine if it is a carcinogen or not and about the only thing that science has discovered is that nicotine may accellerate cancer growth

Claiming that nicotine itself is as harmful as full cigs is wrong, bull and whoever says otherwise claiming it is fact should, in my opinion, be removed from public office
 

NetteG

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Aug 22, 2012
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Hello from Omaha! I just read this did indeed pass, but not at the 7% ... I believe it was downed to 3% which calculates to 15 cents a pack. I have yet to find any information if this includes e-cigarettes or products, but am looking diligently to find some answers. If someone has that information, I would like to see it ... and please feel free to correct my numbers if I am wrong in what I read.
 

sonicdsl

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Here is one story on the passage of the measure.

The comments indicate that a law suit may be filed.

Omaha City Council OKs tobacco tax - Omaha.com

Interesting. Doubt it will happen though, just being cynical. :) At least the rate went down. Doesn't make it right for a city to be paying for a state institution, though. It's ridiculous. I was going to move to Omaha once, glad I didn't!
 

Bill Godshall

Executive Director<br/> Smokefree Pennsylvania
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