Wednesday, March 10 2010
By Chris McCalla, Legislative Dir., IPCPR
(Editor's Note: This article is a follow-up from Mr. McCalla's previous story.)
One of the Association's core legislative platforms is securing the 50-cent tax
cap at the state level. To date, IPCPR retailers and the Cigar Association of America (CAA) have been successful in securing the tax cap in Oregon, Washington, Rhode Island, Iowa, and Wisconsin.
Despite a proactive campaign by the IPCPR and the CAA, we were unsuccessful in convincing the legislature to include the tax cap provision in the newly approved tobacco tax increase bill (as previously detailed in a notice dated March 10, 2010).
While the tax cap has proved a revenue-positive proposition for revenue departments in those states approving the tax cap, it is an extremely long, hard sell in convincing legislators in the merits of the cigar tax cap, ultimately endorsing the tax cap with their "Yes" vote.
Despite this set-back in Utah, the 50-cent cigar tax cap plan remains a priority for the IPCPR and the CAA. Utah is not the only state that would benefit from the cigar tax cap. As wholesale prices and state-level taxes continue rising, the tax cap becomes a vital tax relief for retailers in numerous states around the country and we continue our efforts in securing it.
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For more information on tobacco legislation in your state visit IPCPR.org.
