The Pennsylvania General Assembly is considering several options to backfill Pennsylvania's budget deficit and enhance revenue. PFMA has been informed that several of these options include additional taxation on tobacco products, including cigarettes, e-cigarettes, OTP, and loose tobacco. Exact details are not yet available.
PFMA requests that all members contact their legislators requesting their opposition. The following talking points should be stressed:
• In an April 2016 survey of tobacco retailers, two of three retailers indicate that 20 percent or more of sales come from tobacco products. Taxes would push these sales from Pennsylvania retailers to neighboring states, internet sales, or the black market.
• In the same survey, nearly three-quarters of retailers anticipate a net sales decrease from an additional one dollar excise tax on cigarettes, with 58 percent indicating that they would be forced to cut payroll costs as a result, and 45 percent indicating that they would be forced to lay off employees.
• Pennsylvania's farmers are the sixth largest producers of tobacco in the US. Tobacco is grown in nearly one-third of Pennsylvania counties. At $1.6 billion of revenue per year, the Commonwealth of Pennsylvania receives 41 times more than the average tobacco farmer receives in farm subsidies.
PFMA requests that all members contact their legislators requesting their opposition. The following talking points should be stressed:
• In an April 2016 survey of tobacco retailers, two of three retailers indicate that 20 percent or more of sales come from tobacco products. Taxes would push these sales from Pennsylvania retailers to neighboring states, internet sales, or the black market.
• In the same survey, nearly three-quarters of retailers anticipate a net sales decrease from an additional one dollar excise tax on cigarettes, with 58 percent indicating that they would be forced to cut payroll costs as a result, and 45 percent indicating that they would be forced to lay off employees.
• Pennsylvania's farmers are the sixth largest producers of tobacco in the US. Tobacco is grown in nearly one-third of Pennsylvania counties. At $1.6 billion of revenue per year, the Commonwealth of Pennsylvania receives 41 times more than the average tobacco farmer receives in farm subsidies.
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