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Tobacco Regulatory Update: Taxation  States & Municipalities not slowing down

May 2, 2017

 

1-   “State governments are always looking for more ways to increase revenue so the tobacco industry is usually the first pick for tax increases. These proposals are still popping up in 2017 and they’re often encompassing several product categories like cigarettes, OTP, & vapor/e-cigs."  (Example: In Philadelphia, Pennsylvania, roughly 45% of the selling price is tax, not counting the additional Federal tax.)

2-   "More states are increasing the legal age to 21 for the purchase of tobacco products. It is important to pay close attention to not only what is happening at the state level in your area, but also to pay close attention to the local level.

3-   Wholesalers, Distributors & Retailers ALL HAVE THE POWER to make a difference in regulatory decisions. Example: Westminster, Massachusetts protested a proposed ban on all tobacco product purchases in their town in 2014.  

 

Join a reputable industry association with their greater resources to be sure your voice is heard.”

Monetary Penalties from FDA Increase

"The Department of Health & Human Services has stepped in to adjust the Civil Monetary Penalties (CMP’s) for inflation. Typically dispensed by the FDA as a result of unannounced retail inspections, the HHS states in the final published rule that the inflation adjustment is “…intended to improve the effectiveness of CMP’s & to maintain the deterrent effect of such penalties…” As such, fines are modified annually. Here are the maximum amounts you can expect to see in 2017 versus 2016 if you have an approved retail training program in place. Without an approved retail training program in place, the fines are even steeper.

2016          2017

$275          $279              2 violations in 12 months

$550          $559              3 violations in 24 months

$2,200       $2,236           4 violations in 36 months

$5,501       $5,591           5 violations in 36 months

$11,002     $11,182          6 violations in 48 months"

Information adapted from & provided by: Cheyenne International Q2 Regulatory Update

Courtesy of www.GilsWholesale.com

 

 

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