Word on the street is that one or more of the major credit card issuers are scrutinizing transactions in which their cards are used for remote sales of cigars and other tobacco products.
Legislation
Massachusetts Bill Would Ban Tobacco Products
The Massachusetts legislature is considering a bill (House Bill 1512) that would ban all tobacco products in the state.
Court Dismisses Philip Morris Lawsuit Challenging Tobacco Buyout Calculations
We previously reported that in February 2011, Philip Morris filed a federal lawsuit challenging the United States Department of Agriculture’s (“USDA”) calculation of tobacco buyout assessments under the Fair and Equitable Tobacco Reform Act of 2004 (“FETRA”) for fiscal years 2011-2014. The lawsuit challenged a USDA regulation providing that buyout assessments for large cigars for fiscal years 2011-2014 would be calculated using the federal excise tax rate (“FET”) in effect in fiscal year 2005, rather than the new increased FET rates that took effect under the Children’s Heath Insurance Program Reauthorization Act (“CHIPRA”) in April 2009.
Big Tobacco Pursues Non-Participating Manufacturer Tax in Texas
The major tobacco companies are again lobbying for legislation in Texas that would impose special taxes on small cigarette manufacturers that have not settled with the state for tobacco-related claims.
Texas is one of only four states that are not signatories to the 1998 tobacco Master Settlement Agreement (Minnesota, Mississippi…
Massachusetts Legislature Considers E-Cigarette Excise Tax
The Massachusetts legislature has introduced a measure that would impose tobacco excise taxes on e-cigarettes.
House bill number 4291, introduced by the Joint Committee on Health Care Financing on July 19, 2012, would impose substantial excise tax increases on other tobacco products, such as cigars, smoking tobacco and smokeless tobacco.
TTB Finalizes Regulations on Pipe Tobacco and Processed Tobacco, But Punts on RYO/Pipe Distinction
On June 21, 2012, the Alcohol and Tobacco Tax and Trade Bureau (TTB) of the U.S. Treasury Department issued final regulations, effective immediately, governing permit and related requirements for manufacturers and importers of processed tobacco. TTB also issued new regulations relating to the definition of roll-your-own tobacco. However, TTB deferred issuing regulations on perhaps the most controversial issue — the distinction between pipe tobacco and roll-your-own cigarette tobacco for federal excise tax purposes.
Bill Exempting Cigars From FDA’s Reach Gains Opposition
Last year, we reported on a bill that would exempt from FDA’s reach so-called “traditional” cigars — cigars wrapped in leaf tobacco, containing no filter and weighing at least six pounds per 1,000 count.
New York Legislature Considers E-Cigarette Ban
Pending before the New York legislature is a bill that would impose an outright ban on electronic cigarettes. Opponents of the bill note that FDA is on the verge of regulating e-cigarettes, and that a ban on the products is therefore unwarranted.
Vermont Legislation Attempting to Ban Internet Shipments of E-Cigarettes Fails But Other Restrictions Pass
For some time, Vermont law has prohibited anyone, other than licensed dealers, distributors, and retailers from purchasing cigarettes, roll-your-own tobacco, little cigars, and snuff through the mail or other electronic networks, such as the Internet or by telephone.
“Tobacco Tax Equity Act” Introduced, Including Possible Tax on E-Cigarettes?
Last week, anti-tobacco Senators Durbin (D-IL), Lautenberg (D-NJ) and Blumenthal (D-CT) introduced the so-called “Tobacco Tax Equity Act,” Senate Bill 3081.