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Cities Struggle to Classify E-Cigs as They Grow in Popularity

By: Joy Lim Nakrin
A growing trend is taking hold in the Twin Cities: electronic cigarettes.
Minnesota’s recent tobacco tax hike seems to have given the business a boost. “Smokeless Smoking” opened its first store in 2009. Now, four years later there are four locations.
Since the new tobacco taxes took effect this month, sales spiked 50 percent, says co-owner Tim Koester. He explains, “Certainly our typical customers are former smokers or people who want to transition off traditional cigarettes.”
E-cigarettes contain vapor with nicotine, not tobacco. Since stores that sell them aren’t tobacco shops, some cities are struggling with how to classify them under city codes.
Though they sell nicotine, the stores are not tobacco shops. Though they feature lounges, they are not food and beverage establishments.
Bloomington City Councilwoman Karen Nordstrom says, “It seems very strange to have this under recreation, but its not going fit anywhere else.”
Smokeless Smoking plans to expand its Bloomington location, which opened in January.
Watch the American Cancer Society weigh in on the smokeless option by clicking here.
http://kstp.com/article/stories/s3110950.shtml

Letter to the Editor: North Dakota should take lesson from Minnesota on cigarette tax

Minnesota just raised its cigarette tax by $1.60 per pack, leaving me in envy of our neighbor’s efforts to help people quit smoking.
High cigarette prices and noticeable price hikes like Minnesota’s recent increase prevent young people from getting hooked and help current smokers to kick the habit. That’s good. One in three who try cigarettes get addicted and a majority of those who smoke want to quit. A high tobacco tax is an effective health policy; kudos to Minnesota’s elected leadership for recognizing that and investing in this prevention strategy.
By contrast, North Dakota ranks as one of the “best” states for cheap tobacco. North Dakota’s tobacco tax is outrageously low at a mere $0.44 per pack — the 46th lowest cigarette tax in the nation. Across the river, Minnesota’s cigarette tax is the sixth highest at $2.83 per pack. Is “cheap tobacco” the policy North Dakota wants for its children? From my perspective as a public health advocate and mom, no. North Dakota needs to take action to significantly increase the price of tobacco here. It’d be the first time since 1993.
I love North Dakota, but not the current price of our cigarettes. In addition to its tobacco tax, sometimes I also envy Minnesota for its trees — when the wind blows and we have few to stop it. But we’re proactive and plant trees for the immediate and long-term benefits they provide. For the same reasons, raise North Dakota’s tobacco tax — and the sooner the better.
Valerie Schoepf,
Bismarck
http://www.thedickinsonpress.com/event/article/id/70212/group/Opinion/
http://bismarcktribune.com/news/opinion/mailbag/envying-sister-state-s-high-tax/article_df913772-ee8a-11e2-ad6c-0019bb2963f4.html
http://www.inforum.com/event/article/id/406373/

Tobacco tax: Myth vs. facts

To the editor:
We were disappointed to read the opinions expressed in the July 6 editorial. We would like to provide your readers with accurate information based on fact (references readily available).
The following points address several myths presented by Mr. Peterson:
Myth: The new tobacco tax will help pay for the Vikings Stadium. Fact: The revenue from the tobacco tax will go into the general fund. Some of the money from a one-time tax on cigarette inventory in stores may go to the stadium.
Myth: Raising the tobacco tax is unfair to smokers. Fact: The cost of treating tobacco-related disease far exceeds the amount of tobacco tax collected by smokers. Every man, woman and child in Minnesota pays $554 in excess health care costs due to smoking whether they smoke or not.
Myth: Smokers won’t quit even if the price increases. Fact: Research shows that a $1.60 per pack tax increase will help more than 36,600 current Minnesota smokers quit. In our state, we are fortunate that all smokers have access to free cessation services through QUITPLAN. In addition, low-income smokers suffer disproportionately from the health effects of smoking, and are 70 percent more responsive to price increases.
Myth: Tobacco tax revenue isn’t reliable. Fact: Every state that has significantly raised its tobacco tax has seen an increase in state revenue and health benefits for residents.
The new tax on cigarettes and other tobacco products is estimated to generate approximately $400 million over the next two years and will save our state more than $1.65 billion in long-term health care costs.
Myth: Raising the tobacco tax will force people over the border. Fact: In most places, the price difference isn’t substantial enough to cause people to cross the border to buy cigarettes. Some may cross occasionally, but the number of individuals who do this is statistically very low. Most smokers will continue to buy their cigarettes in Minnesota.
Research has consistently shown that raising the price of tobacco is one of the most effective ways to help smokers quit and prevent kids from starting. Saving Minnesota lives and our kids from a lifetime of addiction is “fair” and a great idea in our book (of facts).
Southwest Community Health Improvement Program (C.H.I.P) members
Paula Bloemendaal
Val Dallenbach
Judy Pitzl
Kris Wegner
http://www.marshallindependent.com/page/content.detail/id/540688/Tobacco-tax–Myth-vs–facts.html?nav=5072

As Minnesota cigarette tax spikes, Moorhead retailers feel the burn

MOORHEAD – The cheapest pack of cigarettes at Brady’s Service Center located off Interstate 94 here jumped to $6.50 on Monday, the first day of a new per-pack tax increase in Minnesota.
Just a few miles away at Fargo’s Gateway Service Center-Cenex along Main Avenue, that same pack of Pall Malls was $3.79.
A pack of Marlboros at Brady’s totaled $8.30 after taxes, more than $3 more than the $5.15 being charged for the same brand at the Cenex station.
On the first day cigarette sales in Minnesota drew an additional $1.60 in taxes per pack, Brady Olson, owner of Brady’s Service Center, said the disparity is another disadvantage for Minnesota convenience stores that have no way of lowering their prices to compete.
“It puts a very unfair advantage for North Dakota because we’re also at a disadvantage on the gas tax, sales tax and whatever other taxes,” he said. “It’s just getting worse and worse.”
The per-pack cigarette tax in Minnesota jumped to $2.83 – the nation’s sixth-highest. North Dakota ranks 46th among the states with a tax of 44 cents per pack, which hasn’t changed in more than a decade.
Olson said the high state tax, in addition to the $1.01 of federal taxes on each pack, leaves little wiggle room for Moorhead retailers – especially when it comes to courting cigarette smokers, the top convenience store customer.
“They do more volume and more dollar sales than anybody on average,” he said. “They also shop more, so they stop more often.”
Moorhead resident Jeremy Myers said he wasn’t even aware of the latest tax hike in his home state because he’s been buying cigarettes in North Dakota for years.
“They’re just cheaper,” he said.
Even before Monday’s increase, the average pack of cigarettes was about $1 cheaper in North Dakota than Minnesota, he said. Myers said the only time he buys in Minnesota is if he has to, and then he’ll just buy one pack to hold him over until he can stock up at a North Dakota store.
Manager Shari Bettenhausen said that’s been common for years at the Cenex station just blocks from the Red River in downtown Fargo.
“I think we’ve always gotten customers from Moorhead just because North Dakota’s always been a little bit cheaper,” she said.
But she said the latest tax hike in Minnesota hadn’t been much of a boost to business in Fargo, at least through Monday morning.
“A few more cartons are going out the door today,” she said.
Olson said he’s been frustrated with the idea behind Minnesota’s latest tax increase, especially after years of hearing politicians talk about the need to make the state’s taxation fairer across all income levels. He also said statements from public health officials that the tax hike will prevent kids from starting smoking and motivate current smokers to kick their habit could be overly simplistic.
“It’s $15 in Las Vegas and over $10 in New York, and they’re still smoking,” he said. “If you want something, you’re going to do it whether you like to pay for it or not.”
http://www.inforum.com/event/article/id/404925/

Minnesota Tobacco Tax Increase is Big Win for Kids and Health

Statement of Matthew L. Myers President, Campaign for Tobacco-Free Kids

WASHINGTON, DC — It is terrific news for Minnesota’s kids and health that the Legislature has voted to increase the state cigarette tax by $1.60 per pack and also increase the tax on other tobacco products. The tobacco tax increase is truly a win-win-win solution for Minnesota — a health win that will reduce tobacco use and save lives, a financial win that will help to balance the state budget and fund essential programs, and a political win that polls show is popular with voters. We look forward to Governor Mark Dayton signing this legislation into law.
We applaud Governor Dayton and legislative leaders for siding with kids over the tobacco industry by supporting the tobacco tax increase. We also congratulate the Raise It for Health Coalition that has fought tirelessly to reduce tobacco use and save lives in Minnesota.
The evidence is clear that increasing the cigarette tax is one of the most effective ways to reduce smoking, especially among kids. Studies show that every 10 percent increase in the price of cigarettes reduces youth smoking by about 6.5 percent and overall cigarette consumption by about 4 percent. Minnesota can expect the $1.60 cigarette tax increase will:

  • Prevent more than 47,700 Minnesota kids from becoming smokers
  • Spur more than 36,600 current adult smokers to quit
  • Save more than 25,700 Minnesota residents from premature, smoking-caused deaths
  • Save more than $1.65 billion in future health care costs.

The state projects that the $1.60 cigarette tax increase and increased taxes on other tobacco products will raise $434 million in new revenue over the next two years (fiscal years 2014-15).
Tobacco use is the leading preventable cause of death and disease in Minnesota, claiming 5,500 lives each year and costing the state $2 billion annually in health care bills. While Minnesota has made significant progress in reducing youth smoking, 18 percent of high school students still smoke and 6,800 more kids become regular smokers every year.
With Minnesota’s increase to $2.83 per pack, the average state cigarette tax will be $1.51 per pack. We call on states across the nation to significantly increase the tobacco tax to reduce tobacco use and its devastating health and financial toll.
http://www.tobaccofreekids.org/press_releases/post/2013_05_21_minnesota