Kansas Governor Mark Parkinson is likely to push for increasing the state's tobacco tax in the coming legislative session, to make up for a budget shortfall.
He says Kansas could face a deficit of more than 300 million dollars in the coming fiscal year.
"Raising cigarette taxes is good public policy," Parkinson said. "It not only raises money, but it also reduces teen smoking. The studies are quite clear that in states where cigarettes are expensive, teens do not smoke as much as in states where cigarettes are cheap. And so I think it would be very good public policy to raise our tax at least to the national average."
The cigarette tax in Kansas is currently 79 cents per pack. The national average is more than a dollar and thirty cents per pack.
Parkinson has said he'll push for new sources of revenue, to avoid more cuts to programs like Medicaid and education.
Showing posts with label smoking news. Show all posts
Showing posts with label smoking news. Show all posts
Nov 23, 2009
Cigarette packages to feature graphic images
Turkey will start warning smokers with both written and pictorial cautions on cigarette packages in 2010.The chairman of the Turkish Tobacco & Alcohol Market Regulation Board (TAPDK), Mehmet Küçük, said on Sunday that the board would start warning smokers with both written statements and pictures as of Jan. 1, 2010. “In addition to the current written warnings, there will be 14 pictures on cigarette and other tobacco product packages,” Küçük told the Anatolia news agency. Küçük said the board would try to draw attention to the harms of cigarettes with this method.
There are 180 different types of cigarette packages in Turkey. All these packages will be changed to include the new visual warning system.
Tobacco companies will switch over to the new packaging at designated intervals. Cigarette packages produced through Dec. 31, which include only written warnings, can be put on the market through June 30, 2010. Both visual and written warnings must cover 65 percent of the cigarette packages, according to the new regulations. One year after the switch, by Jan. 1, 2011, every cigarette package on shelves in Turkey must have the pictorial warning.
Visual warning on cigarette packages is a system already in place in countries including the UK, Belgium, Romania, Brazil, Thailand and Singapore. The European Union has 42 sample pictures for visual warnings on tobacco products. Turkey will choose 14 of these pictures for domestic use. Research indicates that visual warnings are effective in 20 percent of cases of people who want to quit smoking.
Turkey banned smoking in workplaces and malls in May 2008. It gave restaurants, bars and cafés extra time to comply with the new smoking ban. The expanded smoking ban went into effect across Turkey on June 19. Under it, it is illegal to smoke in coffeehouses, cafeterias, pubs, clubs, restaurants and taxis, and advertising or promoting tobacco products or the names and brands of tobacco-producing companies is prohibited, as well.
Turkey became the seventh country in Europe to ban smoking in all enclosed public places.
There are 180 different types of cigarette packages in Turkey. All these packages will be changed to include the new visual warning system.
Tobacco companies will switch over to the new packaging at designated intervals. Cigarette packages produced through Dec. 31, which include only written warnings, can be put on the market through June 30, 2010. Both visual and written warnings must cover 65 percent of the cigarette packages, according to the new regulations. One year after the switch, by Jan. 1, 2011, every cigarette package on shelves in Turkey must have the pictorial warning.
Visual warning on cigarette packages is a system already in place in countries including the UK, Belgium, Romania, Brazil, Thailand and Singapore. The European Union has 42 sample pictures for visual warnings on tobacco products. Turkey will choose 14 of these pictures for domestic use. Research indicates that visual warnings are effective in 20 percent of cases of people who want to quit smoking.
Turkey banned smoking in workplaces and malls in May 2008. It gave restaurants, bars and cafés extra time to comply with the new smoking ban. The expanded smoking ban went into effect across Turkey on June 19. Under it, it is illegal to smoke in coffeehouses, cafeterias, pubs, clubs, restaurants and taxis, and advertising or promoting tobacco products or the names and brands of tobacco-producing companies is prohibited, as well.
Turkey became the seventh country in Europe to ban smoking in all enclosed public places.
Nov 10, 2009
Firestorm over smokeless cigarette
Electronic cigarettes are opening a new front in the tobacco wars as state and local lawmakers try to restrict the product, which may allow users to circumvent smoking bans.
The battery-powered device is made up of a cartridge containing nicotine, flavoring and chemicals. It turns nicotine, which is addictive, into a vapor that is inhaled. Users say they're "vaping," not smoking.
E-cigarettes are used by at least a half-million Americans, says Matt Salmon, head of the Electronic Cigarette Association.
"People who smoke ought to have better alternatives, because some can't quit," he says. His father, a longtime smoker, died last week of cancer and emphysema.
Public health officials question the safety of e-cigarettes. The Food and Drug Administration, which regulates tobacco and nicotine replacement devices, says the e-cigarettes it tested had carcinogens. E-cigarette distributors have filed a lawsuit challenging the FDA's authority.
"It's a new frontier. We don't know what the dangers are," says John Banzhaf of Action on Smoking and Health, an anti-smoking group.
"We're actively investigating these companies and their products," says Connecticut Attorney General Richard Blumenthal. Other actions:
• California passed a ban on e-cigarette sales, but Republican Gov. Arnold Schwarzenegger vetoed it this month.
• Oregon Attorney General John Kroger, a Democrat, reached a settlement in August with retailers and distributors not to sell them.
• New Hampshire state Rep. Rich DiPentima, a Democrat, is crafting a bill to ban sales to minors.
• New Jersey state Assemblywoman Connie Wagner, a Democrat, plans a bill to subject e-cigarettes to the same restrictions as cigarettes.
• In Paramus, N.J., the health department's board plans to propose an ordinance today banning e-cigarettes where smoking is not allowed.
• In August, Suffolk County, N.Y., restricted e-cigarettes in public places and banned sales to minors.
To Julie Woessner, 46, a former smoker in Wildwood, Mo., they are "almost a miracle," allowing her to kick her two-packs-a-day cigarette habit.
The battery-powered device is made up of a cartridge containing nicotine, flavoring and chemicals. It turns nicotine, which is addictive, into a vapor that is inhaled. Users say they're "vaping," not smoking.
E-cigarettes are used by at least a half-million Americans, says Matt Salmon, head of the Electronic Cigarette Association.
"People who smoke ought to have better alternatives, because some can't quit," he says. His father, a longtime smoker, died last week of cancer and emphysema.
Public health officials question the safety of e-cigarettes. The Food and Drug Administration, which regulates tobacco and nicotine replacement devices, says the e-cigarettes it tested had carcinogens. E-cigarette distributors have filed a lawsuit challenging the FDA's authority.
"It's a new frontier. We don't know what the dangers are," says John Banzhaf of Action on Smoking and Health, an anti-smoking group.
"We're actively investigating these companies and their products," says Connecticut Attorney General Richard Blumenthal. Other actions:
• California passed a ban on e-cigarette sales, but Republican Gov. Arnold Schwarzenegger vetoed it this month.
• Oregon Attorney General John Kroger, a Democrat, reached a settlement in August with retailers and distributors not to sell them.
• New Hampshire state Rep. Rich DiPentima, a Democrat, is crafting a bill to ban sales to minors.
• New Jersey state Assemblywoman Connie Wagner, a Democrat, plans a bill to subject e-cigarettes to the same restrictions as cigarettes.
• In Paramus, N.J., the health department's board plans to propose an ordinance today banning e-cigarettes where smoking is not allowed.
• In August, Suffolk County, N.Y., restricted e-cigarettes in public places and banned sales to minors.
To Julie Woessner, 46, a former smoker in Wildwood, Mo., they are "almost a miracle," allowing her to kick her two-packs-a-day cigarette habit.
Nov 9, 2009
Cigarette demand falling, but profits solid
RICHMOND, Va. — The weak economy and higher prices are snuffing out cigarette demand around the world — most vigorously in the U.S., where a federal tax hike, smoking bans, health concerns and social stigma have cut demand at least 10 percent.
Two of the world's biggest cigarette makers reported Thursday that they emerged from the third quarter in better shape than analysts expected and raised their 2009 profit estimates.
Both Philip Morris International — which makes Marlboro and other top brands for sale abroad — and Reynolds American Inc. — the second-biggest cigarette seller in the U.S., with brands such as Camel and Pall Mall — raised prices even as consumers bought fewer cigarettes. And Reynolds is looking to smokeless alternatives for future growth.
Analysts are closely watching the U.S. industry's third quarter for the first clear sense of cigarette volumes after a 62-cent-per-pack federal tax increase took effect. Cigarette sales fell during the first half of the year before and after the April 1 change.
Reynolds American recorded 72 percent higher profit than in last year's third quarter, when restructuring costs and the falling value of its trademarks dampened its earnings. Based in Winston-Salem, N.C., it earned $362 million for the period that ended Sept. 30, up from $211 million a year earlier.
The company said tax increases and the tough economy cut the volume of cigarettes it shipped by 11 percent, and it pegged the decline industrywide at 12.6 percent. Reynolds said its smokeless tobacco unit, Conwood Co., sold 11.7 percent more moist snuff products by volume during the quarter.
In a conference call with investors, Reynolds CEO Susan M. Ivey said she expects U.S. cigarette demand to fall 8 percent to 9 percent per year and easing back to annual drops of 3 percent to 4 percent over the next few years.
Declines are less stark in the rest of the world.Philip Morris International shipped 219.3 billion cigarettes in the quarter, 2.9 percent less than a year earlier, as declines in Europe and the Middle East were offset by a rising volume in Latin America and Canada from its acquisition of Rothmans Inc. during the third quarter last year.
The company, which sells Marlboros, L&M, Parliament and Virginia Slims abroad, said Thursday its third-quarter profit fell nearly 14 percent as the stronger dollar shrunk profit earned in other currencies.
When the dollar is strong, companies that sell goods abroad and convert that revenue from foreign currencies, they take a hit in the dollar value of those sales. That effect is particularly strong for Philip Morris International, because all its business is overseas.
Philip Morris International — which has offices in Lausanne, Switzerland, and New York — said it earned $1.79 billion during the quarter. It is the world's second-biggest cigarette maker after the state-controlled China National Tobacco Corp. It was spun off in 2008 from Richmond, Va.-based Altria Group Inc., owner of the largest U.S. tobacco company, Philip Morris USA.
Thursday's earnings reports come on the heels of those for Altria Group Inc., parent company of the nation's No. 1 tobacco company, Philip Morris USA.
Altria reported Wednesday that its third-quarter profit to rose 1.7 percent on cost-cutting and improved results from its cigar unit. It said it sold about 12 percent fewer cigarettes versus an industry decline it estimated at 10 percent.
Greensboro, N.C.-based Lorillard Inc., the nation's third-largest tobacco company with the market-leading menthol brand Newport, reports on its third quarter Monday.
Two of the world's biggest cigarette makers reported Thursday that they emerged from the third quarter in better shape than analysts expected and raised their 2009 profit estimates.
Both Philip Morris International — which makes Marlboro and other top brands for sale abroad — and Reynolds American Inc. — the second-biggest cigarette seller in the U.S., with brands such as Camel and Pall Mall — raised prices even as consumers bought fewer cigarettes. And Reynolds is looking to smokeless alternatives for future growth.
Analysts are closely watching the U.S. industry's third quarter for the first clear sense of cigarette volumes after a 62-cent-per-pack federal tax increase took effect. Cigarette sales fell during the first half of the year before and after the April 1 change.
Reynolds American recorded 72 percent higher profit than in last year's third quarter, when restructuring costs and the falling value of its trademarks dampened its earnings. Based in Winston-Salem, N.C., it earned $362 million for the period that ended Sept. 30, up from $211 million a year earlier.
The company said tax increases and the tough economy cut the volume of cigarettes it shipped by 11 percent, and it pegged the decline industrywide at 12.6 percent. Reynolds said its smokeless tobacco unit, Conwood Co., sold 11.7 percent more moist snuff products by volume during the quarter.
In a conference call with investors, Reynolds CEO Susan M. Ivey said she expects U.S. cigarette demand to fall 8 percent to 9 percent per year and easing back to annual drops of 3 percent to 4 percent over the next few years.
Declines are less stark in the rest of the world.Philip Morris International shipped 219.3 billion cigarettes in the quarter, 2.9 percent less than a year earlier, as declines in Europe and the Middle East were offset by a rising volume in Latin America and Canada from its acquisition of Rothmans Inc. during the third quarter last year.
The company, which sells Marlboros, L&M, Parliament and Virginia Slims abroad, said Thursday its third-quarter profit fell nearly 14 percent as the stronger dollar shrunk profit earned in other currencies.
When the dollar is strong, companies that sell goods abroad and convert that revenue from foreign currencies, they take a hit in the dollar value of those sales. That effect is particularly strong for Philip Morris International, because all its business is overseas.
Philip Morris International — which has offices in Lausanne, Switzerland, and New York — said it earned $1.79 billion during the quarter. It is the world's second-biggest cigarette maker after the state-controlled China National Tobacco Corp. It was spun off in 2008 from Richmond, Va.-based Altria Group Inc., owner of the largest U.S. tobacco company, Philip Morris USA.
Thursday's earnings reports come on the heels of those for Altria Group Inc., parent company of the nation's No. 1 tobacco company, Philip Morris USA.
Altria reported Wednesday that its third-quarter profit to rose 1.7 percent on cost-cutting and improved results from its cigar unit. It said it sold about 12 percent fewer cigarettes versus an industry decline it estimated at 10 percent.
Greensboro, N.C.-based Lorillard Inc., the nation's third-largest tobacco company with the market-leading menthol brand Newport, reports on its third quarter Monday.
Nov 5, 2009
West City gets grant to reduce tobacco access by local youths
The village of West City has been chosen by the Illinois Liquor Control Commission to receive a grant in the amount of $1,100 to establish a comprehensive educational and enforcement program addressing minimum-age tobacco laws.
“We are pleased to receive this grant to enhance our efforts to reduce youth access to tobacco products. The health of the children in our community is very important,” Chief of Police Steve Mumbower said.
The commission, the state’s lead agency in developing strategies to reduce the illegal sale of tobacco products to minors, annually awards $1 million in grants to communities that are willing to implement its Tobacco Enforcement Program.
Participating communities are required to provide retail education to their retailers prior to implementing the enforcement component.
All tobacco retailers will receive the commission’s Tobacco Retailer Kit, which includes a review of state minimum-age tobacco laws, required signage and training guides for their personnel.
In addition, each tobacco retailer will receive three compliance checks.
Tobacco retailers within the entire program currently average over 90-percent compliance, and Illinois is ranked seventh nationwide in Synar tobacco retailer compliance rates.
“We are pleased to receive this grant to enhance our efforts to reduce youth access to tobacco products. The health of the children in our community is very important,” Chief of Police Steve Mumbower said.
The commission, the state’s lead agency in developing strategies to reduce the illegal sale of tobacco products to minors, annually awards $1 million in grants to communities that are willing to implement its Tobacco Enforcement Program.
Participating communities are required to provide retail education to their retailers prior to implementing the enforcement component.
All tobacco retailers will receive the commission’s Tobacco Retailer Kit, which includes a review of state minimum-age tobacco laws, required signage and training guides for their personnel.
In addition, each tobacco retailer will receive three compliance checks.
Tobacco retailers within the entire program currently average over 90-percent compliance, and Illinois is ranked seventh nationwide in Synar tobacco retailer compliance rates.
Nov 2, 2009
A call to arms for tobacco store owners
Let us consider the case of a cigar store owner. No food is served. No alcohol is available. The only products are cigars, tobacco products and accessories. Because no alcohol is served, it doesn't qualify for status as "Specialty Tobacco Bar."
Let us also assume that this establishment is owned by a retiree, the sole employee. He started this store because of his love of cigars. He has become something of an expert and customers often seek out his advice, much in the way a wine enthusiast may seek the opinion of a sommelier.
Under the expanded ban he will not be allowed to sample a new cigar in his own store in order to provide advice for his customers.
Who is being harmed and needs to be protected by the expanded ban? Does he not have the right to run his business to the best of his ability?
I would urge all tobacco store owners to call their City-County Council member and urge him or her to vote against Proposal 371.
Let us also assume that this establishment is owned by a retiree, the sole employee. He started this store because of his love of cigars. He has become something of an expert and customers often seek out his advice, much in the way a wine enthusiast may seek the opinion of a sommelier.
Under the expanded ban he will not be allowed to sample a new cigar in his own store in order to provide advice for his customers.
Who is being harmed and needs to be protected by the expanded ban? Does he not have the right to run his business to the best of his ability?
I would urge all tobacco store owners to call their City-County Council member and urge him or her to vote against Proposal 371.
Oct 26, 2009
Off Beat: Clark College professor’s theory goes up in smoke
Clark College is justifiably proud of its pioneering status as a no-smoking campus.In 2005, Clark became the first public college in Washington to abolish the use of tobacco.
Clark was also a national leader as one of just 25 colleges in the country to become tobacco-free.
And, Clark was the second community college in the U.S. to take that step, according to Rebecca Wale, environmental health manager.
... Which must have been an interesting turn of events for some former Clark students. It wasn’t just that tobacco was tolerated at Clark for decades. In 1946, it became part of a classroom exercise.
Echoes of that era popped up in The Columbian’s archives in a story about Tony Bacon, longtime Vancouver newsman who died in September.
In the story, Bacon recalled enrolling in Clark College as a 16-year-old in 1946. It was just after World War II, and many of Bacon’s classmates were veterans who were going back to school on the G.I. Bill.
Homer Foster, who taught history and social sciences, liked to conduct experiments in class. His classes were filled with veterans, and half of them were smokers.
Foster had heard that smoking impaired reasoning abilities, Bacon related. Foster set about to test this point on the first day of the quarter. The professor divided his students into smokers and non-smokers, and handed out an exam.
When the results were in, the professor was amazed at the results: The smokers had way better grades than the non-smokers, Bacon said.
"Poor old Homer Foster decided then and there that he should become a smoker," Bacon told the writer.
"He wasn’t very adept at it, but he kept puffing away because of the results of this hysterical experiment."
Hatching a penguin
There’s another bit of irony in the no-smoking policy: Clark College might owe its "Penguin Nation" identity to something that has been banned from campus.
According to one story, the roots of the school’s mascot could be traced to a Clark College student who swiped a mechanical penguin from a promotional display at a local drug store.
As the story goes, the pilfered penguin advertised Kool cigarettes.
Clark was also a national leader as one of just 25 colleges in the country to become tobacco-free.
And, Clark was the second community college in the U.S. to take that step, according to Rebecca Wale, environmental health manager.
... Which must have been an interesting turn of events for some former Clark students. It wasn’t just that tobacco was tolerated at Clark for decades. In 1946, it became part of a classroom exercise.
Echoes of that era popped up in The Columbian’s archives in a story about Tony Bacon, longtime Vancouver newsman who died in September.
In the story, Bacon recalled enrolling in Clark College as a 16-year-old in 1946. It was just after World War II, and many of Bacon’s classmates were veterans who were going back to school on the G.I. Bill.
Homer Foster, who taught history and social sciences, liked to conduct experiments in class. His classes were filled with veterans, and half of them were smokers.
Foster had heard that smoking impaired reasoning abilities, Bacon related. Foster set about to test this point on the first day of the quarter. The professor divided his students into smokers and non-smokers, and handed out an exam.
When the results were in, the professor was amazed at the results: The smokers had way better grades than the non-smokers, Bacon said.
"Poor old Homer Foster decided then and there that he should become a smoker," Bacon told the writer.
"He wasn’t very adept at it, but he kept puffing away because of the results of this hysterical experiment."
Hatching a penguin
There’s another bit of irony in the no-smoking policy: Clark College might owe its "Penguin Nation" identity to something that has been banned from campus.
According to one story, the roots of the school’s mascot could be traced to a Clark College student who swiped a mechanical penguin from a promotional display at a local drug store.
As the story goes, the pilfered penguin advertised Kool cigarettes.
Oct 7, 2009
FDA starts collecting fees from tobacco companies
The Food and Drug Administration on Thursday began collecting millions in fees from the nation's tobacco companies to help fund the agency's newly granted authority to regulate the industry.
The user fees, which will be collected quarterly, are based on each company's share of the U.S. tobacco market. The FDA will collect about $23 million for fiscal 2009. That will rise to $235 million in 2010 and grow to $712 million by 2019.
The FDA would not disclose the assessments for specific companies.
Stifel, Nicolaus & Co. analyst Christopher Growe said in a note to investors that Richmond, Va.-based Altria Group Inc., owner of market-leading Philip Morris USA, would be responsible for about 50 percent of the fees.
FDA spokeswoman Kathleen Quinn said the fees will be used to fund the Center for Tobacco Products, the agency's group tasked with regulating tobacco. The fees will pay for staffing, offices, systems that will be used to register products and outside contractors.
In June, President Barack Obama signed the law that allows the FDA regulate the industry. Its authority includes the ability to ban certain products, reduce nicotine in tobacco products and block labels such "low tar" and "light." Tobacco companies also will be required to cover their cartons with large, graphic warnings.
The law doesn't let the FDA ban nicotine or tobacco outright.
The Congressional Budget Office estimated in June that the law would reduce the number of underage tobacco users by 11 percent by 2019 and lead to a 2 percent decline in smoking among adults.
Altria supported the legislation, while its chief rivals -- No. 2 Reynolds American Inc. and No. 3 Lorillard Inc., both based in North Carolina -- opposed it. The latter two have joined in a lawsuit with other smaller tobacco companies challenging specific marketing regulations of the law.
The nation's tobacco companies already pay $1.01 per pack that it sells for federal excise taxes, and the top cigarette makers also make yearly payments as part of the landmark 1998 tobacco settlement to reimburse states for smoking-related health care costs.
In that settlement, tobacco companies agreed to make about $206 billion in annual payments over more than two decades. Companies also make payments as part of legislation that ended the federal tobacco program, a quota program that limited and stabilized the amount of tobacco produced by farmers.
The user fees, which will be collected quarterly, are based on each company's share of the U.S. tobacco market. The FDA will collect about $23 million for fiscal 2009. That will rise to $235 million in 2010 and grow to $712 million by 2019.
The FDA would not disclose the assessments for specific companies.
Stifel, Nicolaus & Co. analyst Christopher Growe said in a note to investors that Richmond, Va.-based Altria Group Inc., owner of market-leading Philip Morris USA, would be responsible for about 50 percent of the fees.
FDA spokeswoman Kathleen Quinn said the fees will be used to fund the Center for Tobacco Products, the agency's group tasked with regulating tobacco. The fees will pay for staffing, offices, systems that will be used to register products and outside contractors.
In June, President Barack Obama signed the law that allows the FDA regulate the industry. Its authority includes the ability to ban certain products, reduce nicotine in tobacco products and block labels such "low tar" and "light." Tobacco companies also will be required to cover their cartons with large, graphic warnings.
The law doesn't let the FDA ban nicotine or tobacco outright.
The Congressional Budget Office estimated in June that the law would reduce the number of underage tobacco users by 11 percent by 2019 and lead to a 2 percent decline in smoking among adults.
Altria supported the legislation, while its chief rivals -- No. 2 Reynolds American Inc. and No. 3 Lorillard Inc., both based in North Carolina -- opposed it. The latter two have joined in a lawsuit with other smaller tobacco companies challenging specific marketing regulations of the law.
The nation's tobacco companies already pay $1.01 per pack that it sells for federal excise taxes, and the top cigarette makers also make yearly payments as part of the landmark 1998 tobacco settlement to reimburse states for smoking-related health care costs.
In that settlement, tobacco companies agreed to make about $206 billion in annual payments over more than two decades. Companies also make payments as part of legislation that ended the federal tobacco program, a quota program that limited and stabilized the amount of tobacco produced by farmers.
Sep 11, 2009
Judge halts tribe's cigarette sales to nonmembers
In a decision that could put a significant crimp in untaxed cigarette sales from the Poospatuck tribal reservation in Mastic, a federal judge has granted New York City's request for an injunction against sales to nonmembers of the Indian tribe.
U.S. District Judge Carol Amon, following a four-day hearing in May, found that sales from reservation smoke shops fueled a massive bootlegging trade of cheap smokes in New York City that deprived the city of tax revenue and reduced the effectiveness of anti-smoking programs.
Although untaxed sales to tribal members for their personal use are legal, Amon said the privately run smoke shops named in the suit had abused the privilege with bulk sales of massive quantities and efforts to help buyers evade police.
"Defendants' principal business model is to provide customers with the opportunity to purchase cigarettes at significantly reduced prices, without paying taxes," Amon wrote in the decision, issued late Tuesday.
The judge stayed the injunction for 30 days to give the defendants a chance to file an appeal.
New York City, in its lawsuit filed in 2008, alleged that reservation smoke shops had sold 24 million cartons since 2004 - more than 19,000 a day for the 300 residents of the 55-acre reservation. The city said Wednesday that untaxed sales from the reservation had cost it about $225 million in revenue from 2004 to 2008, and cost the state and city combined $840 million.
"The city will go after every dollar that is owed to city taxpayers," Mayor Michael Bloomberg said in a statement lauding the ruling.
Earlier in the case, Amon rejected an argument that the smoke shops and their owners, which are licensed by the Unkechaug tribe, could not be sued because they are part of a sovereign nation.
Lawyers for the smoke shops and their operators did not return calls Wednesday, but Harry Wallace, chief of the Unkechaug Indians who live on the reservation, predicted an appeal.
He said the decision was an unjustified intrusion into tribal affairs, and denounced Amon for ignoring a state court ruling issued last month by an appeals panel in Rochester that said state tax laws don't prohibit Indians from selling untaxed cigarettes to nontribal members on reservations.
"She ignored every legal precedent in our favor," said Wallace. "I'm curious about how a federal judge can simply ignore a state court on state law."
The injunction covers five smoke shops - Monique's, Peace Pipe Smoke Shop, Red Dot & Feather, Smoking Arrow and TDM - and nine individuals. Other reservation smoke shops settled earlier in the case.
U.S. District Judge Carol Amon, following a four-day hearing in May, found that sales from reservation smoke shops fueled a massive bootlegging trade of cheap smokes in New York City that deprived the city of tax revenue and reduced the effectiveness of anti-smoking programs.
Although untaxed sales to tribal members for their personal use are legal, Amon said the privately run smoke shops named in the suit had abused the privilege with bulk sales of massive quantities and efforts to help buyers evade police.
"Defendants' principal business model is to provide customers with the opportunity to purchase cigarettes at significantly reduced prices, without paying taxes," Amon wrote in the decision, issued late Tuesday.
The judge stayed the injunction for 30 days to give the defendants a chance to file an appeal.
New York City, in its lawsuit filed in 2008, alleged that reservation smoke shops had sold 24 million cartons since 2004 - more than 19,000 a day for the 300 residents of the 55-acre reservation. The city said Wednesday that untaxed sales from the reservation had cost it about $225 million in revenue from 2004 to 2008, and cost the state and city combined $840 million.
"The city will go after every dollar that is owed to city taxpayers," Mayor Michael Bloomberg said in a statement lauding the ruling.
Earlier in the case, Amon rejected an argument that the smoke shops and their owners, which are licensed by the Unkechaug tribe, could not be sued because they are part of a sovereign nation.
Lawyers for the smoke shops and their operators did not return calls Wednesday, but Harry Wallace, chief of the Unkechaug Indians who live on the reservation, predicted an appeal.
He said the decision was an unjustified intrusion into tribal affairs, and denounced Amon for ignoring a state court ruling issued last month by an appeals panel in Rochester that said state tax laws don't prohibit Indians from selling untaxed cigarettes to nontribal members on reservations.
"She ignored every legal precedent in our favor," said Wallace. "I'm curious about how a federal judge can simply ignore a state court on state law."
The injunction covers five smoke shops - Monique's, Peace Pipe Smoke Shop, Red Dot & Feather, Smoking Arrow and TDM - and nine individuals. Other reservation smoke shops settled earlier in the case.
Sep 7, 2009
Eyewitness News Tests Fire Safe Cigarettes
Smokers in Kansas may not realize it, but the cigarettes they're buying now are different from what was on the shelves just two months ago. In July, fire safe cigarettes became the only kind available in the state.
Experts hope the new cigarettes will cause fewer fires because they go out much more quickly. Fire safe cigarettes have several layers of paper surrounding the tobacco making it more difficult for oxygen to feed a burning cigarette. It means if the cigarette isn't actively being smoked, it'll burn itself out.
Since 2006, Wichita has seen 226 cigarette-caused fires.
"We deal with people who are having their worst day ever," says Wichita Fire Captain Stuart Bevis.
Capt. Bevis joined Eyewitness News Thursday to help compare the differences between the old and new cigarettes. He's investigated around 2,000 fires in his time with the department.
"They'll say nothing bad's ever happened to them when they've fallen asleep with their cigarette or had too much alcohol with their cigarette," says Capt. Bevis, "because it only takes one time. When that one time happens, it's a tragedy."
In our first test, we simply lit one of each type of cigarette and laid them in an ash tray. The fire safe cigarette went out in less than two minutes while the old cigarette burned all the way to the filter for 16 minutes.
"It does have a chance to be a little bit better," Capt. Bevis says of the new cigarettes. "Two and a half minutes smoldering against 15? That gives us a much better chance of it going out before something bad happens."
In the second test, we placed the lit cigarettes on an old recliner's cushion. Once again, the fire safe cigarette only takes a couple of minutes to go out, leaving a small burn in the polyester fabric. The old cigarette burns to the filter, leaving a long burn mark and almost getting to the cotton fabric inside the cushion's cover.
We use our last two tests checking what typically happens in a cigarette-caused fire, a cigarette that falls in a cushion corner or into a crevice. In these tests, both types of cigarettes burn to the filter.
In one of the tests, the fire safe cigarette chars a piece of highly-combustible lint. It likely means the recliner wasn't far from going up in flames. Capt. Bevis says it's a sign that just because the product is safer doesn't mean it's safe.
"They can have cigarettes that are supposed to put themselves out in two-and-a-half minutes, but if all the right circumstances fall into place, it can still lead to a fire if they're dealt with carelessly," says Capt. Bevis.
We wanted to know if you've ever heard of fire safe cigarettes. The results of our exclusive Fact Finder 12 scientific survey show 28% of you say you've heard of the new cigarettes while most, 72%, say you have not.
Not everyone likes the new cigarettes. More than 8,600 smokers nationwide have signed an online petition calling for a repeal of fire safe cigarettes. They complain the new cigarettes taste bad and have more carbon monoxide in each drag.
Experts hope the new cigarettes will cause fewer fires because they go out much more quickly. Fire safe cigarettes have several layers of paper surrounding the tobacco making it more difficult for oxygen to feed a burning cigarette. It means if the cigarette isn't actively being smoked, it'll burn itself out.
Since 2006, Wichita has seen 226 cigarette-caused fires.
"We deal with people who are having their worst day ever," says Wichita Fire Captain Stuart Bevis.
Capt. Bevis joined Eyewitness News Thursday to help compare the differences between the old and new cigarettes. He's investigated around 2,000 fires in his time with the department.
"They'll say nothing bad's ever happened to them when they've fallen asleep with their cigarette or had too much alcohol with their cigarette," says Capt. Bevis, "because it only takes one time. When that one time happens, it's a tragedy."
In our first test, we simply lit one of each type of cigarette and laid them in an ash tray. The fire safe cigarette went out in less than two minutes while the old cigarette burned all the way to the filter for 16 minutes.
"It does have a chance to be a little bit better," Capt. Bevis says of the new cigarettes. "Two and a half minutes smoldering against 15? That gives us a much better chance of it going out before something bad happens."
In the second test, we placed the lit cigarettes on an old recliner's cushion. Once again, the fire safe cigarette only takes a couple of minutes to go out, leaving a small burn in the polyester fabric. The old cigarette burns to the filter, leaving a long burn mark and almost getting to the cotton fabric inside the cushion's cover.
We use our last two tests checking what typically happens in a cigarette-caused fire, a cigarette that falls in a cushion corner or into a crevice. In these tests, both types of cigarettes burn to the filter.
In one of the tests, the fire safe cigarette chars a piece of highly-combustible lint. It likely means the recliner wasn't far from going up in flames. Capt. Bevis says it's a sign that just because the product is safer doesn't mean it's safe.
"They can have cigarettes that are supposed to put themselves out in two-and-a-half minutes, but if all the right circumstances fall into place, it can still lead to a fire if they're dealt with carelessly," says Capt. Bevis.
We wanted to know if you've ever heard of fire safe cigarettes. The results of our exclusive Fact Finder 12 scientific survey show 28% of you say you've heard of the new cigarettes while most, 72%, say you have not.
Not everyone likes the new cigarettes. More than 8,600 smokers nationwide have signed an online petition calling for a repeal of fire safe cigarettes. They complain the new cigarettes taste bad and have more carbon monoxide in each drag.
Sep 1, 2009
State drops collection of taxes on Indian cigarettes
ALBANY — Despite a ballooning budget deficit, the Paterson administration quietly has written off taxes it had been expecting to collect on sales of cigarettes by American Indian retailers — an admission that yet another governor has no plans to resolve the long-standing, thorny matter.
In April, Gov. David A. Paterson and lawmakers agreed on a budget for the state's current fiscal year that projected revenue of $65 million from taxing cigarettes sold to non-Indians in smoke shops, through the mail or over the Internet from reservation-based businesses.
But with no fanfare — or even public notice — the administration has eliminated the $65 million, meaning the governor now does not expect to begin collecting the taxes at least until April 1, the start of the new fiscal year.
The decision drew immediate and sharp criticism from health groups and an association that represents non-Indian retailers who say they cannot compete with the American Indians, who do not charge the state's sales $2.75-per-pack excise tax.
"It's embarrassing, and it's outrageous that the Empire State can't seem to figure out how to collect this tax when just about every other state does," said Russell Sciandra, director of the Center for a Tobacco Free New York, which is connected with the American Cancer Society.
Critics say the state loses $1 billion annually by not collecting the cigarette tax. Seneca Nation of Indians retailers lead the country in the sales of untaxed cigarettes.
For years, state officials have worried about potential violence, such as the clash between state troopers and Indians on the Thruway in 1995, when then-Gov. George E. Pataki tried to end the tax-free sales.
Seneca Nation officials, who were working Friday on flood relief efforts, were unavailable to comment.
Last week, the Paterson administration released a 329-page update on state spending through the first quarter of the fiscal year.
The report said the administration believes the state now faces a $2.1 billion deficit this year, and Paterson is looking at spending cuts and other options to propose to a special session of the State Legislature, expected to be held next month. Lawmakers have not ruled out raising taxes to close the gap.
Deep in its pages, the spending update briefly mentions lower cigarette tax revenues, but makes no specific reference to jettisoning the cigarette tax collections.
During an interview on an unrelated topic, Robert Megna, the governor's budget director, revealed to The Buffalo News that the state is backing away from the projection of $65 million from the potential revenue source.
Matt Anderson, a spokesman for Megna, later said the $65 million was deleted from the budget "to prudently address potential risks to our receipts forecast."
"We continue to work diligently toward a negotiated settlement of this issue," he added.
Laws on the books already permit the state to collect the tax, which has been an issue going back to the days of Mario M. Cuomo's tenure as governor. Over the past decade, the dispute has intensified as the state increased cigarette taxes, widening the playing field between Indian and non-Indian retailers.
The Senecas have maintained that treaty rights going back to the days of George Washington give them the right to sell products, including cigarettes, without taxes.
They have long said they never will act as agents of the state government in collecting taxes, which they say would kill off a flourishing Western New York business that employs hundreds of people.
On numerous occasions, the State Legislature has sought to force Paterson, and governors before him, to collect the tax.
In January, Paterson said he wanted to resolve the issue through negotiation. But critics say that, with the stakes so lucrative, the Indian tribes, especially the Senecas, have little reason to negotiate.
"It's sending totally the wrong signal," James Calvin, executive director of the New York Association of Convenience Stores, said of the administration quietly striking the Indian cigarette tax money from the budget.
"If the state has a $2.1 billion deficit, it's crazy not to access the hundreds of millions of dollars in tax revenue that's readily available from this source," he added. "It's already a law. It's collectable. The United States Supreme Court has said we can collect it. Why would you ignore close to $1 billion when staring at such a huge deficit?"
In June 2008, the state raised its excise tax on a pack of cigarettes by $1.50 to $2.75. That gives an Indian retailer who does not charge the tax a built-in price advantage of $27.50 per carton.
"By the end of the fiscal year, the state and Gov. Paterson, we conservatively estimate, will have forgone $1 billion that is owed on Indian cigarette sales," Sciandra said.
In April, Gov. David A. Paterson and lawmakers agreed on a budget for the state's current fiscal year that projected revenue of $65 million from taxing cigarettes sold to non-Indians in smoke shops, through the mail or over the Internet from reservation-based businesses.
But with no fanfare — or even public notice — the administration has eliminated the $65 million, meaning the governor now does not expect to begin collecting the taxes at least until April 1, the start of the new fiscal year.
The decision drew immediate and sharp criticism from health groups and an association that represents non-Indian retailers who say they cannot compete with the American Indians, who do not charge the state's sales $2.75-per-pack excise tax.
"It's embarrassing, and it's outrageous that the Empire State can't seem to figure out how to collect this tax when just about every other state does," said Russell Sciandra, director of the Center for a Tobacco Free New York, which is connected with the American Cancer Society.
Critics say the state loses $1 billion annually by not collecting the cigarette tax. Seneca Nation of Indians retailers lead the country in the sales of untaxed cigarettes.
For years, state officials have worried about potential violence, such as the clash between state troopers and Indians on the Thruway in 1995, when then-Gov. George E. Pataki tried to end the tax-free sales.
Seneca Nation officials, who were working Friday on flood relief efforts, were unavailable to comment.
Last week, the Paterson administration released a 329-page update on state spending through the first quarter of the fiscal year.
The report said the administration believes the state now faces a $2.1 billion deficit this year, and Paterson is looking at spending cuts and other options to propose to a special session of the State Legislature, expected to be held next month. Lawmakers have not ruled out raising taxes to close the gap.
Deep in its pages, the spending update briefly mentions lower cigarette tax revenues, but makes no specific reference to jettisoning the cigarette tax collections.
During an interview on an unrelated topic, Robert Megna, the governor's budget director, revealed to The Buffalo News that the state is backing away from the projection of $65 million from the potential revenue source.
Matt Anderson, a spokesman for Megna, later said the $65 million was deleted from the budget "to prudently address potential risks to our receipts forecast."
"We continue to work diligently toward a negotiated settlement of this issue," he added.
Laws on the books already permit the state to collect the tax, which has been an issue going back to the days of Mario M. Cuomo's tenure as governor. Over the past decade, the dispute has intensified as the state increased cigarette taxes, widening the playing field between Indian and non-Indian retailers.
The Senecas have maintained that treaty rights going back to the days of George Washington give them the right to sell products, including cigarettes, without taxes.
They have long said they never will act as agents of the state government in collecting taxes, which they say would kill off a flourishing Western New York business that employs hundreds of people.
On numerous occasions, the State Legislature has sought to force Paterson, and governors before him, to collect the tax.
In January, Paterson said he wanted to resolve the issue through negotiation. But critics say that, with the stakes so lucrative, the Indian tribes, especially the Senecas, have little reason to negotiate.
"It's sending totally the wrong signal," James Calvin, executive director of the New York Association of Convenience Stores, said of the administration quietly striking the Indian cigarette tax money from the budget.
"If the state has a $2.1 billion deficit, it's crazy not to access the hundreds of millions of dollars in tax revenue that's readily available from this source," he added. "It's already a law. It's collectable. The United States Supreme Court has said we can collect it. Why would you ignore close to $1 billion when staring at such a huge deficit?"
In June 2008, the state raised its excise tax on a pack of cigarettes by $1.50 to $2.75. That gives an Indian retailer who does not charge the tax a built-in price advantage of $27.50 per carton.
"By the end of the fiscal year, the state and Gov. Paterson, we conservatively estimate, will have forgone $1 billion that is owed on Indian cigarette sales," Sciandra said.
Subscribe to:
Posts (Atom)