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State Looks to Snuff out Tax Break on Little Cigars
The Scranton Times-Tribune ^ | 7/28/06 | David Singleton

Posted on 07/28/2006 10:41:52 AM PDT by Namyak

Montage Tobacco Co. owner Mark Brier says there’s no denying little cigars have become an appealing alternative to cigarettes for smokers on a budget.

The 49-year-old Dunmore resident pulled a pack of Smokin’ Joes little cigars off a rack Thursday at his Davis Street shop and flipped it over to reveal the price: 89 cents. A pack of the least expensive cigarettes he sells sets a smoker back more than three bucks.

“It’s price. It’s strictly the price,” Mr. Brier said of the popularity of little cigars. “They’re not overtaking cigarettes by any means, but they are going.”

Wrapped in brown instead of white paper, little cigars are the same size as cigarettes, have filters like cigarettes and are sold in 20-cigar packs like cigarettes. The big difference is they are not taxed or regulated like cigarettes.

State officials across the nation want to change that.

The attorneys general of Pennsylvania and 39 other states have asked the federal government to close a loophole that allows the little smokes to be classified as cigars, arguing that — the brown wrapping aside — they are cigarettes in everything but name.

“In a nutshell, if it walks like a duck and it quacks like a duck, it’s a duck,” said Nils Frederiksen, spokesman for Pennsylvania Attorney General Tom Corbett.

As recently as four years ago, Mr. Brier said Montage Tobacco sold maybe one pack of little cigars for every 300 packs of cigarettes. Today, that ratio is one to 100. Over the same period, the little cigar varieties on sale at the shop have burgeoned, from fewer than 20 to more than 50.

Under current federal rules, tobacco manufacturers decide whether their product is a cigar or a cigarette. If it’s a cigar, it is not subject to the $1.35-a-pack tax or the public health restrictions Pennsylvania places on cigarettes, Mr Frederiksen said.

That’s only part of the concern, he said. Many little cigars are flavored, which combined with the low price — usually one-third to one-half the price of cigarettes — makes them appealing to young smokers.

“If you want to sell cigars, fine,” Mr. Frederiksen said. “If you want to wrap a cigarette in brown paper and call it a little cigar, that’s different.”

Steamtown Cigar Club on Spruce Street, which specializes in traditional hand-rolled cigars, doesn’t carry little cigars. Owner John Meyers agrees the small cigars are essentially cigarettes, but he’d still hate to see them taxed.

“My fear is once they start taxing that, they’ll start taxing everything,” Mr. Meyers said.

Mr. Brier said some of his little cigar customers prefer cigarettes because they are more flavorful, but they stick with the alternative smokes because they are cheaper. There’s no question in his mind what would happen to little cigars if they were taxed the same as cigarettes.

“They’d disappear,” he said. “They’d just disappear.”

Contact the writer: dsingleton@timesshamrock.com


TOPICS: Business/Economy; Culture/Society; US: Pennsylvania
KEYWORDS: cigarettes; cigars; puff; pufflist; smoking; taxes
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Apparently the Pennsylvania state government is slowly making the move towards taxing all tobacco products. Apparently the unconscionable amount of money they reap off of cigarette smokers isn't enough anymore. Always looking for ways to extract just one more cent out of the people. Disgusting.
1 posted on 07/28/2006 10:41:53 AM PDT by Namyak
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To: Namyak

We all knew this was coming!


2 posted on 07/28/2006 10:43:57 AM PDT by netmilsmom (To attack one section of Christianity in this day and age, is to waste time.)
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To: Namyak
“My fear is once they start taxing that, they’ll start taxing everything,”

Ever the way of the politician.

3 posted on 07/28/2006 10:46:32 AM PDT by taxcontrol
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To: SheLion

ping


4 posted on 07/28/2006 10:47:37 AM PDT by Pan_Yans Wife ("Death is better, a milder fate than tyranny. "--Aeschylus)
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To: Namyak

How long until the first Clinton joke?


5 posted on 07/28/2006 10:48:36 AM PDT by MichiganConservative (Government IS the problem.)
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To: Namyak

Went to Smokin Jpoes website and the current price is $14.00 carton (10 packs).


6 posted on 07/28/2006 10:48:43 AM PDT by Old Professer (The critic writes with rapier pen, dips it twice, and writes again.)
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To: Namyak

If they are wrapped in tobacco that should make the cigars no matter what size.


7 posted on 07/28/2006 10:51:10 AM PDT by gondramB (Named must your fear be before banish it you can.)
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To: MichiganConservative

>>How long until the first Clinton joke?<<

Yeah, I was expecting a response like

"Now, Bill Clinton can date younger girls."


8 posted on 07/28/2006 10:55:07 AM PDT by gondramB (Named must your fear be before banish it you can.)
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To: Namyak

The word "cigarette" means "Little Cigar"...........


9 posted on 07/28/2006 10:59:33 AM PDT by Red Badger (Is Castro dead yet?........)
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To: Gabz; SheLion

This one is probably a nanny state ping and a puff list ping.....


10 posted on 07/28/2006 11:00:02 AM PDT by CSM ("Most men's inappropriate thoughts end as soon as the girl talks..." - Dinsdale, 5/30/06)
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To: Namyak

I had a friend in Oklahoma who smoked little cigars. They smelled much better than cigarettes.


11 posted on 07/28/2006 11:04:40 AM PDT by Tax-chick (I've always wanted to be 40 ... and it's as good as I anticipated!)
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To: Namyak
“My fear is once they start taxing that, they’ll start taxing everything,” Mr. Meyers said.

If Mr. Meyers isn't a conservative already, he may have just had the epiphany that will make him one.

It's highly ironic that the states are noticing little cigars, which have been around for years and years, only after more people have started switching over to them from cigarettes -- excercising their freedom as consumers and their right to refuse to shoulder an excessive and burdensome tax.

Sometimes it's hard to believe that this is the same country that once had a Boston Tea Party and a Whiskey Rebellion.

12 posted on 07/28/2006 11:24:46 AM PDT by Southside_Chicago_Republican (The moving finger writes and, having writ, moves on......)
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To: Namyak

As a nonsmoker I haven't been paying attention, but have the feds and the states figured out that some people roll their own?


13 posted on 07/28/2006 11:51:42 AM PDT by KarlInOhio (Loose lips sink ships - and the New York Times really doesn't have a problem with sinking ships.)
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To: netmilsmom
“It’s price. It’s strictly the price,” Mr. Brier said of the popularity of little cigars. “They’re not overtaking cigarettes by any means, but they are going.”
Market forces....NO WAY!!!!
14 posted on 07/28/2006 12:04:16 PM PDT by xpertskir (McCain Lieberman '08(democratic ticket))
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To: Namyak

It's been nearly fifty years ago that, as a teenager, I inhaled a draw from a Between the Acts little cigar. I'm still coughing.


15 posted on 07/28/2006 12:31:28 PM PDT by gcruse (http://gcruse.typepad.com)
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To: Namyak

Jack Asses setting their priorities !


16 posted on 07/28/2006 2:05:57 PM PDT by TheOracleAtLilac
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To: Old Professer

>>Went to Smokin Jpoes website and the current price is $14.00 carton (10 packs).<<

At the BP station near my house, their marquee sign states that Smokers Choice (the same thing) are 8.95 a carton.

Premium cigarettes are 45.00 a carton.


17 posted on 07/28/2006 2:20:52 PM PDT by netmilsmom (To attack one section of Christianity in this day and age, is to waste time.)
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To: netmilsmom

Late apology: I can spell great, I just can't always hit the exact key on the board; fat fingers.


18 posted on 07/29/2006 9:45:13 AM PDT by Old Professer (The critic writes with rapier pen, dips it twice, and writes again.)
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To: Namyak; Just another Joe; CSM; lockjaw02; Publius6961; elkfersupper; nopardons; metesky; Mears; ...

Nanny State PING...............

$$$$$$$$$ That's all they care about.....money which equals power which equals control.


19 posted on 07/29/2006 9:54:22 AM PDT by Gabz (Taxaholism, the disease you elect to have (TY xcamel))
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To: netmilsmom

You are in MI?


20 posted on 07/29/2006 9:54:33 AM PDT by patton (LGOPs = head toward the noise, kill anyone not dressed like you.)
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