On December 9, 2020, the Tennessee Department of Revenue issued its Notice #20-21, on the subject of the State of Tennessee’s excise tax on other tobacco products or “OTP”. The Notice notes that OTP is defined as “cigars … manufactured tobacco and snuff of all descriptions whether made of tobacco or any substitute for tobacco.”
Continue Reading Tennessee Department of Revenue Clarifies that ENDS, Nicotine Pouches, Smokeable Hemp and Tobacco Substitutes Are Not Subject to OTP Tax
State Regulatory
California Setting Higher Tobacco Excise Tax Base for Out-of-State Distributors Subject to Legal Challenge on Various Grounds
Posted in Legislation, State Regulatory
In October 2019, the California Department of Tax and Fee Administration (CDTFA) issued a blatantly discriminatory Special Notice changing how the CDTFA will apply the excise tax for Other Tobacco Products (OTP) to the wholesaler’s cost basis when an out-of-state California distributor sells tobacco products to wholesalers, retailers, or consumers located in California. When a shipment is made by an out-of-state distributor to an in-state customer (retailer or adult consumer), the tax base will be the “wholesale cost” of the in-state purchaser and not the wholesale cost of the distributor. …
Continue Reading California Setting Higher Tobacco Excise Tax Base for Out-of-State Distributors Subject to Legal Challenge on Various Grounds
Montgomery County, Maryland Takes Judicial and Regulatory Action Against E-Cigarette Manufacturers and Distributors
On October 16, the Montgomery County Council publicly authorized its lawsuit filed in federal court on October 11, against Juul Labs and Altria Group for alleged violations of Maryland and federal law based on claims of aggressive marketing of e-cigarette products to minors.
Council President Nancy Navarro remarked, “The Council authorizes taking legal action against Juul Labs and Altria Group. This lawsuit supports our ongoing efforts to protect our community members from the public health impacts associated with e-cigarette products and vaping. …
Continue Reading Montgomery County, Maryland Takes Judicial and Regulatory Action Against E-Cigarette Manufacturers and Distributors
FDA Poised to Crack Down on Vape Shops
Posted in FDA, State Regulatory
A recent Food and Drug Administration Request for Proposal indicates that the agency is poised to more aggressively ensure that vape shops are satisfying their obligations under the Family Smoking Prevention and Tobacco Control Act. The FDA has asked for bids on a third-party contract to inspect vape shops and other companies that manufacture components of electronic nicotine delivery systems (ENDS). The agency is apparently prepared to spend $23 million over a five-year period for these services. …
Continue Reading FDA Poised to Crack Down on Vape Shops
Troutman Tobacco Team’s Article Featured in FDLI’s Update Magazine
Tobacco team members Bryan Haynes and Paige Fitzgerald attended this year’s Annual Conference hosted by the Food and Drug Law Institute (FDLI) in Washington, DC, on May 4-5, 2017. Bryan and Paige covered each of the tobacco-related sessions, and wrote an article for the organization’s Update magazine, which covers current regulatory issues of importance to the industry. …
Continue Reading Troutman Tobacco Team’s Article Featured in FDLI’s Update Magazine
California Finalizes New Prop. 65 Warning Label Rule
Posted in Legislation, State Regulatory
On September 2, 2016, California’s Office of Environmental Health Hazard Assessment (OEHHA) finalized its rule amending Article 6 of the regulations implementing Proposition 65 (i.e., California’s Safe Drinking Water and Toxic Environment Act of 1986). As a result of the new regulation, tobacco and electronic cigarette manufacturers may be required to update their Proposition 65 warnings.…
Continue Reading California Finalizes New Prop. 65 Warning Label Rule
Lawsuits Being Filed Against the FDA Regarding Deeming Regulations
Posted in FDA, State Regulatory
In May through July several groups have filed lawsuits against the US Food and Drug Administration alleging that the deeming regulations that expand the regulation by FDA of additional tobacco products violate the law.
Currently there are eight lawsuits pending, of which 5 pertain to the vapor industry. Two of these five have been consolidated because they address similar claims.…
Continue Reading Lawsuits Being Filed Against the FDA Regarding Deeming Regulations
Expanded Washington Laws Regulating Vapor Products Take Effect
Posted in State Regulatory
Washington is the latest state to impose enhanced regulatory requirements upon retailers and distributors of vapor cigarettes, as well as upon the consumer use of these products. New legislation concerning “vapor products” in Washington took effect on June 28, 2016.…
Continue Reading Expanded Washington Laws Regulating Vapor Products Take Effect
Deeming Regulations: Important Deadlines in 2016
The FDA’s proposed deeming regulations extend the FDA’s regulatory authority to additional tobacco products including e-cigarettes, e-liquids, cigars, hookah tobacco, pipe tobacco and dissolvables, referred to as “covered tobacco products.” The FDA currently regulates cigarette tobacco, roll-your own, cigarettes, and smokeless tobacco.…
Continue Reading Deeming Regulations: Important Deadlines in 2016
Texas Supreme Court Upholds Tax on Non-Settling Tobacco Companies
Posted in Significant Cases, State Regulatory
On April 1, 2016, the Texas Supreme Court ruled that the state could impose a special tax on cigarette manufacturers that were not part of a multibillion-dollar settlement agreement reached with the major tobacco companies in the late 1990s.…
Continue Reading Texas Supreme Court Upholds Tax on Non-Settling Tobacco Companies