Cigarette tax and e cigarettes debated in ND legislature

By KX News

Bismarck, ND -A bill that would have substantially raised taxes on cigarettes in North Dakota failed Friday afternoon.
But two others limiting access to electronic cigarettes passed.
The proposed cigarette tax would have raised taxes more than 200 percent on a package of cigarettes.
Currently the cigarette tax in North Dakota is 44 cents.
By contrast, the tax in Minnesota is 2.90 and in South Dakota it’s a 1.53.
Supporters of the bill say the increase would reduce the number of smokers and lower health care costs.
“Whenever a tobacco tax is increased, smoking, especially youth smoking goes down and it goes down dramatically. That I believe is undeniable,” says Rep. Jon Nelson, R – Rugby.
Bill opponents argued that a tax won’t stop smoking, and burdens business.
“If it truly is our duty to coerce people into a healthy lifestyle through taxation, why don’t we tax fast food with high fat content and high cholesterol, all things supersized and salt,” says Rep. Rick Becker, R – Bismarck.
The cigarette tax bill failed by a 56-34 vote.
The house passed two bills designed to keep e-cigarettes away from kids.
The two bills differ in these ways —
One labels e-cigarettes as tobacco products, tying them to the laws and enforcement already in place for cigarettes.
Those laws include things like compliance checks from local police and how cigarettes are displayed in stores.
The other bill separates e-cigarettes into their own category with their own set of enforcement laws.
“I don’t know how we can separate the idea of discussing e-cigarettes and then we’re going to talk about the taxing of tobacco when it’s clearly a tobacco product,” says Rep. Kenton Onstad, D – Parshall.
“We do not want kids under the age of 18 to buy cigarettes, whether it be on the internet, whether it be in the store. E-cigarettes, anywhere. We don’t want them to by regular cigarettes, we don’t want them to buy e-cigarettes,” says Rep. Al Carlson, R – Fargo.
Both bills now move to the Senate where only one, if any, is likely to pass.
http://www.wdaz.com/news/north-dakota/3679119-cigarette-tax-and-e-cigarettes-debated-nd-legislature

Forum editorial: Raise cigarette tax in ND

North Dakota should raise taxes on tobacco products. The state’s tax is among the lowest in the nation (44 cents on a pack of cigarettes); indeed lower than some of the major tobacco-growing states.
Raising the tax, which has been at an embarrassing low level for decades, comports nicely with North Dakota’s successful anti-tobacco public health efforts, and specifically would deter young people from buying cigarettes. Every state that has raised cigarette taxes has found it is a significant factor in preventing youngsters and young adults from buying.
Two bills are in the legislative hopper. A House bill calls for an increase to $1.56 a pack; a Senate bill would raise the tax to $1.10. Both bills have bipartisan sponsors, recognition that recent public opinion surveys found support for a higher tax among all political persuasions, with the only resistance to a higher tax coming from smokers. The tax increases in both bills are too low, but would be a start if a majority of lawmakers see the issue for what it is: a public health initiative, not retail sales problem.
It is first and foremost a public health matter. Of course retail sales of cigarettes and other tobacco products would take a hit. That’s the aim of a higher tax. So the crux of the matter is the choice posited by columnist Steve Andrist in the Crosby (N.D.) Journal: “In the final analysis, it comes down to what you want to save: sales or lives.”
The retail lobby and legislators who oppose a higher tax are confronted with that stark choice.
The most recent poll of North Dakotans’ attitudes about a higher tobacco tax (and the e-cigarette phenomenon) shows a majority of all partisan subgroups support an increase. Not surprisingly, the state’s smoke-free law, which was resisted for years by the Legislature and was at last approved by ballot measure, has support across all partisan and demographic lines, according to the December 2014 Public Opinion Strategies poll.
Furthermore, the polling found that attempts to allow e-cigarettes in public places (that is, exempt them from the state’s tobacco restrictions law), “is a non-starter with North Dakotans.” The few lawmakers pushing e-cig exemptions might want to rethink their proposals.
Finally, the lesson of the Legislature’s longtime refusal to act on a statewide tobacco-use ban is instructive for the tax debate. A ballot measure to enact a ban – after several cities, large and small had imposed their own bans – easily passed a statewide vote. It was a clear repudiation of the Legislature’s intransigence on the tobacco issue.
If lawmakers remain in the pocket of a shortsighted and out-of-step retail lobby (the same group that vigorously fought a statewide smoking ban), North Dakotans would be justified in taking the tobacco tax to the ballot. All indications suggest it would win easy approval.
Forum editorials represent the opinion of Forum management and the newspaper’s Editorial Board.
http://www.inforum.com/opinion/editorials/3675987-forum-editorial-raise-cigarette-tax-nd

ND House to vote on raising the tobacco tax this week

By WDAY News

Bismarck, ND (WDAY TV) – The North Dakota House will decide this week whether to raise tobacco taxes. The state has not done so since 1993.
Republican Rep. Jon Nelson of Rugby is pushing a bill that would raise state cigarette tax from 44 cents to $1.52 a pack. Taxes on snuff would go from 60 cents to $2.72.
Nelson says the bill could save lives.
The House Finance and Taxation Committee voted 12 to 2 to give the bill a do-not-pass recommendation. The full House will decide later this week.
http://www.wday.com/news/north-dakota/3674367-nd-house-vote-raising-tobacco-tax-week

Opinion: Shame on North Dakota tobacco product sellers

By Howard Oppegard from Valley City, N.D.

Shame on retailers who oppose a tax increase on tobacco products in North Dakota (Forum story, Feb. 4).
Since greed may be their motivation, they should be reminded cancer victims do not buy anything. My sister, a smoker, died from lung cancer one month after her 50th birthday.
http://www.inforum.com/letters/3674263-letter-shame-north-dakota-tobacco-product-sellers

What to watch in North Dakota's Legislature: Common Core, tobacco taxes, surge funding

By JAMES MacPHERSON  Associated Press

BISMARCK, North Dakota — The North Dakota Legislature will remain busy this week introducing and finishing voting on bills in their respective chambers, including those that address education standards, tobacco taxes and surge funding.

COMMON CORE

North Dakota’s House is slated to vote this week whether to repeal new state English and math standards that outline what students should know and when. The House Education Committee voted 9-4 last week to give the bill a do-not-pass recommendation.

Rep. Jim Kasper, R-Fargo, is sponsoring the legislation to repeal Common Core education standards for students in kindergarten through 12th grade. Kasper and other critics believe the standards represent a federal takeover of education.

Backers contend the standards provide students with the critical thinking and writing skills needed for college and the workforce.

North Dakota adopted the standards in 2011 and began to fully implement them during the current school year. Assessments based on the new standards will start for all students this spring.

North Dakota School Superintendent Kirsten Baesler said more than 130 educators from around the state were involved in helping develop the Common Core standards.

TOBACCO TAXES

North Dakota hasn’t raised it tax on tobacco since 1993 and the streak appears to have no immediate end in sight.

Rep. Jon Nelson, R-Rugby, is pushing the bill that would raise the state’s cigarette tax from 44 cents to $1.54 a pack, equal to the national average. Tax on a can of snuff would jump from 60 cents to $2.72.

Nelson believes the measure will save lives by deterring young people from taking up the habit.

Retailers have successfully fought off several attempts to raise the state’s tobacco tax in the past two decades, arguing that it punishes retailers and unfairly targets low-income North Dakotans.

The House Finance and Taxation Committee voted 12-2 to give the bill a do-not-pass recommendation. The full House will decide whether to reject the measure on smokes, chew and chewing tobacco.

North Dakota ranks 46th among states in the amount of tax smokers pay. New York charges the most state excise tax in the nation at $4.35. A $1.54-per-pack tax would put North Dakota more in line with neighboring states

SURGE FUNDING

North Dakota’s Senate already has approved $1.1 billion in special funding so that infrastructure projects can begin by this summer. The measure is slated to go before the House Appropriations Committee on Wednesday.

The “surge funding” bill that would fast-track funding to cities, school districts and communities impacted by North Dakota’s exploding growth.

House budget writers have asked cities, counties and townships to provide a detailed listing of “shovel ready” projects and the estimated cost of each project that would be completed this year.

HEITKAMP BILL

A bill that would prohibit the governor from appointing a successor to a vacant North Dakota congressional seat is slated to be heard by the House Government and Veterans Affairs Committee this week.

Republican Rep. Roscoe Streyle, a Minot banker, introduced the bill, which is response to a rumored gubernatorial bid next year by popular freshman Democratic U.S. Sen. Heidi Heitkamp.

She’s been mum on the subject.

Heitkamp won’t be up for re-election in the Senate until 2018. Republican Gov. Jack Dalrymple hasn’t said whether he plans to seek another term as governor.

Heitkamp is the only Democrat holding a statewide office in North Dakota. The former state auditor and attorney general unsuccessfully ran for governor in 2000.

http://www.therepublic.com/view/story/4d58129cf6c1441ba45a72e5de9185da/ND–In-the-Legislature

Letter: Shame on North Dakota tobacco product sellers

By Howard Oppegard from Valley City, N.D.

Shame on retailers who oppose a tax increase on tobacco products in North Dakota (Forum story, Feb. 4).
Since greed may be their motivation they should be reminded cancer victims do not buy anything. My sister, a smoker, died from lung cancer one month after her 50th birthday.
http://www.inforum.com/letters/3674263-letter-shame-north-dakota-tobacco-product-sellers

Bismarck Tribune: Legislators need to get tobacco bill right

Bismarck Tribune Editorial Board:

On the surface, a bill to raise tobacco taxes would seem a no-brainer to many North Dakotans.

The state ranks 46th nationally in tobacco taxes at 44 cents per pack, ahead of Alabama, Georgia, Louisiana and Virginia.

Supporters of a higher tax argue it will deter young people from picking up the habit, nudge smokers to quit and provide more money to the state.

House Bill 1421 would raise the state’s cigarette tax to $1.54 per pack and increase the excise tax on other tobacco products from 28 percent of the wholesale purchase price to 43.5 percent.

There have been efforts to raise tobacco taxes since 1993, with the latest failed attempt in 2013. A hearing this week on the bill pitted health care officials against business interests.

Mike Rud, president of the North Dakota Petroleum Marketers Association, suggested the state shouldn’t tamper with an economy that remains robust. He said his association opposes the bill, and that increasing the tax would make it more difficult for retailers along the Montana and South Dakota borders, states where the taxes would be lower.

However, Dr. Eric Johnson, of Grand Forks, noted the state gets a flunking grade from the American Lung Association when it comes to tobacco taxes.

Rep. Jon Nelson, R-Rugby, said the bill is intended to stop young preople from smoking, while generating an estimated $103.5 million in new revenue in the 2015-17 biennium.

Supporters of the bill expect to have it both ways. They predict the higher taxes will prevent approximately 7,500 people younger than 18 from smoking and prompt an estimated 8,000 adult smokers to quit. They also see a possible $300 million in savings in future health care expenditures. It’s likely fewer smokers will result in fewer health problems and reduce the impact on health care. Plus supporters expect the $103.5 million in new revenue.

Fewer smokers is a laudable goal — there’s no doubt that tobacco poses a health risk and increases medical costs for everyone. The bill’s health benefits should be the focus of legislative action — we shouldn’t be looking at the dollar signs.

Smoking remains legal, though where smoking can occur has been limited. Raising taxes for health reasons has merit, but raising them to punish people doesn’t.

Under the bill, 60 percent of new revenue would go toward health-related programs in the state’s Community Health Trust Fund. The rest would go to local communities for health-related programs.

Designating the money for health programs shouldn’t translate into funding more anti-smoking campaigns that already are well-financed. There are more deserving programs than can be counted. The Legislature needs to ensure the money goes to the right programs.

North Dakota needs to do everything it can to prevent more people from smoking and to encourage smokers to quit. Lawmakers need to take a close look at HB1421 to be sure it achieves those goals. It shouldn’t be done to create a new revenue stream.

Done correctly, HB1421 should be approved. Improving the health of the state’s residents should be the goal of all North Dakotans.

http://bismarcktribune.com/news/opinion/editorial/legislators-need-to-get-tobacco-bill-right/article_629fb919-ead5-52b0-b62b-0a5143d7e6a9.html

Senators Hear Tobacco Tax Bill

By Steph Scheurer, Reporter, KX News
State senators hear a bill to increase the tax on tobacco.
If passed, the tax on a pack of cigarettes would increase to two dollars.
“I support this bill whole-heartedly,” says Valerie Schoepf, Vice President, Tobacco Free Coalition.
Valerie Schoepf is Vice President of the Tobacco Free Coalition.
Today she shares her personal story in favor of a tobacco tax incentive bill.
“I was 14 years old and a freshman in high school when my dad passed away from lung and brain cancer. He got hooked as a smoker growing up in Parshall North Dakota and he was a lifelong smoker,” says Schoepf.
Senate Bill 2322 would increase taxes on tobacco products from 28 percent to 50 percent.
For cigarettes, the tax would go from 44 cents to two dollars a pack.
“The research without question says it is the cost of tobacco that drives its use,” says Tim Mathern, District 11 Senator.
The bill also adjusts the definition of other tobacco products to include new tobacco and tobacco driven products, like e-cigarettes.
Schoepf says three components are needed to prevent people from taking up smoking.
“Price, tobacco free environments, and education. North Dakota’s doing great on two of those but we’re missing that third leg and that’s diluting those other A plus efforts,” says Schoepf.
“Having one of the lowest tobacco taxes in the nation is not something that we should be proud of. It’s time to raise the tobacco tax for the health of our state and to help protect our youth from a lifelong addiction to nicotine and the deadly consequences of tobacco,” Kristie Wolff, Program Manager, American Lung Assoc. ND.
Not everyone agrees with raising the tobacco tax however.
Mike Rud, President of the North Dakota Retailers Association says North Dakota’s economy is strong and is the last state that needs a business tax increase of any kind.
“Increasing the excise tax could hurt legitimate retailers when adult smokers shift purchases across state lines or to other outlets and as you heard today, at two dollars a pack, we would now be higher than South Dakota and Montana,” says Mike Rud, President, ND Retailers Assoc.
For Carol Two Eagle, tobacco is a part of her daily spiritual life.
“When you tax tobacco, you’re taxing something that’s essential for our religious practice and that’s unconstitutional. I am not sure how you’re going to get around this. but it needs to be addressed because we are the only group in North America, traditional indians, who require this material. Tobacco in our way is holy,” Carol Two Eagle.
Over a dozen people shared their viewpoint with legislators – some for the bill, and some against…
Sponsoring senators say the bill would save an estimated one billion dollars in healthcare costs over the next 10 years.
If passed, the new tobacco tax revenue would be deposited in a state general fund and legislators would decide how the revenue is to be spent.
The bill would exclude FDA approved cessation products like patches and lozenges.
To read more or watch video: http://www.kxnet.com/story/28027041/senators-hear-tobacco-tax-bill

Increases in tobacco tax opposed by businesses

By Mike Nowatzki, Forum Communications

BISMARCK — Retailers and distributors urged state lawmakers Tuesday to snuff out a bill that would raise North Dakota’s tobacco taxes for the first time in 22 years, warning it could have a “devastating” impact on businesses, spur cigarette smuggling and unfairly burden smokers who can least afford it.

Backers of the $1.10-per-pack increase in House Bill 1421 said it will put North Dakota on par with the national average, save millions in avoided health care costs, prevent young people from starting smoking and give adults the incentive they need to quit.

“I look at it as a silent intervention,” Rep. Jon Nelson, R-Rugby, the bill’s prime sponsor, told the House Finance and Taxation Committee during a standing-room-only hearing at the Capitol.

The president of the North Dakota Petroleum Marketers Association, which lobbied successfully against a similar bill last session, said cigarettes are the top revenue generator for convenience stores, accounting for 32 percent of in-store sales nationwide.

Raising the tax could drive smokers across state lines or to the Internet or American Indian reservations, where tobacco isn’t taxed, Mike Rud said.

“With the retail sector of the state’s economy hitting on all cylinders, why would any legislator support throwing a wrench into the economic engine?” he said.

Bill supporters lamented that North Dakota’s current excise tax of 44 cents per pack is the 46th lowest in the nation and hasn’t been raised since 1993.

The bipartisan bill would boost the tax to $1.54 per pack, which is the national average and 1 cent higher than South Dakota’s tax. Taxes would increase from $0.60 to $2.72 per ounce on snuff, and from $0.16 to $0.73 per ounce on chewing tobacco.

Rep. Kathy Hogan, D-Fargo, a bill co-sponsor, said the proposed tax was intentionally kept at or below the tax leves of surrounding states so as not to disadvantage North Dakota businesses. Montana’s tax is $1.70 per pack, while Minnesota’s is $2.90, seventh highest among states.

Committee member Rep. Wayne Trottier, R-Northwood, asked Nelson if the tax hike would end up “on the backs of children” of low-income parents who choose to keep smoking. Nelson and others acknowledged that statistics show smoking rates are higher among the less affluent, but he said the higher tax will hopefully make them think twice about smoking.

“If children don’t rank higher than a pack of cigarettes or a pouch of Copenhagen, for example, then what have we become?” he said.

The tax hike would boost state revenue by an estimated $138.6 million in the 2015-17 biennium, assuming an 11 percent drop in cigarette consumption and 15 percent drop in use of other tobacco products, according to the bill’s fiscal note. North Dakota collected roughly $31 million from cigarette and tobacco taxes last year, up from $21 million in 2004.

Sixty percent of the new tax revenue would go into the state’s Community Health Trust. Counties and cities would receive 25 percent and 15 percent, respectively, for local public health and safety programs.

Dr. Eric Johnson, president of Tobacco Free North Dakota, said North Dakota is a leader in tobacco prevention and control programs and has a strong smoke-free indoor air law.

“That’s really the hole in our preventive strategy right now,” he said of the tax.

Paul Mutch, owner of Mutch Oil Co. in Larimore, about 25 miles west of Grand Forks, said it’s “unbelievable” that a state in North Dakota’s financial condition would consider raising taxes on anything. He said a tobacco tax would hit the middle class the hardest.

“The lady on Social Security who comes in and buys two cartons per week as she carries an oxygen tank is not going to quit smoking because they now cost more,” he said in written testimony.

A companion bill, Senate Bill 2322, would raise the cigarette tax to $2 per pack. That bill has its first hearing Wednesday.

http://www.jamestownsun.com/news/state/3671277-increases-tobacco-tax-opposed-businesses

Teen tobacco users likely to use it in multiple forms

By Reuters Media

A national survey of U.S. middle and high school students finds that those who use tobacco or nicotine products are likely to also use more than one type of product.

About 15 percent of the adolescents reported smoking cigarettes, cigars, pipes, bidis, hookahs or water pipes, using dissolvable forms of tobacco or “vaping” e-cigarettes. And twice as many in that group used two or more of these product types compared to those who said they used only one.

“Our study really shows that kids are using more than one of these products at the same time,” said Youn Ok Lee of RTI International in Research Triangle Park, North Carolina, the report’s lead author.

Lee said there are many varieties of tobacco products available. And each type of product also has a diverse range of options, such as flavors.

“So we don’t really know a lot about how this range of products might affect kids’ use of tobacco,” she told Reuters Health.

Using data from a 2012 national survey of nearly 25,000 U.S. students, researchers found that about 7 percent reported using one tobacco product in the past 30 days. About 4 percent said they used two tobacco products in that time. Another 4 percent said they used three or more products.

“I was a little bit surprised by just how many kids were using more than one product,” Lee said. “Even more surprising was that using three or more products is more popular than using cigarettes alone.”

Overall, about 3 percent of kids exclusively used cigarettes and about 2 percent exclusively used cigars. Those products were the most popular and their use increased with age.

The study team also found that almost 1 percent of students reported exclusively using e-cigarettes, which contain no tobacco but deliver a vapor laced with nicotine, the addictive substance in tobacco.

That’s more than the 0.4 percent who reported using e-cigarettes in combination with traditional cigarettes.

The increasing popularity of e-cigarettes is a concern for U.S. health officials as use has tripled between 2013 and 2014.

Lee noted that the results don’t tell why young people are using more than one form of tobacco, or how often the survey participants had used the products.

The researchers did find that being a boy, using flavored products, being dependent on nicotine, being receptive to advertising and having friends who used any tobacco products were all factors linked to an increased risk of using more than one product.

Policymakers and researchers should look at how these products affect tobacco use among middle and high school students, said Lee, because little is known about the influence of non-cigarette products.

Moreover, these products may create a public health issue by introducing people who would never have smoked cigarettes to nicotine, she said.

Lee emphasized that it’s important to look at all tobacco products together – not individually.

SOURCE: http://bit.ly/1za0ykL Pediatrics, online February 2, 2015.

http://www.inforum.com/news/3671610-teen-tobacco-users-likely-use-it-multiple-forms