Free market conservatives, including Americans for Tax Reform, are descending on the state capitol, urging lawmakers to keep so-called alternative tobacco (Nicotine) products “tax-free” in Florida.
Under current Florida law, many alternative tobacco products are free from excise taxes. Products like vapor, pouches, and a new heat-not-burn technology, are not taxed like traditional cigarettes. Proposed legislation, SB 1418 / HB 785, would ensure that remains the case in Florida for new heat-not-burn products that are just becoming available on the U.S. market.
Doug Kellogg, State Projects Director with Americans for Tax Reform, made the case, “Failure to pass HB 785 would create a scenario where these life-saving products recognized by the FDA as appropriate for the protection of public health are taxed at the destructive cigarette tax rate.”
“Furthermore, Americans for Tax Reform urges that its final language be crafted with a forward-thinking approach. It is essential to ensure that not only currently available reduced-risk products but also future innovations in tobacco harm reduction are encompassed within its scope. Given the rapid advancements in technology, good public policy should be adaptable to new opportunities in this field, preventing the need for frequent legislative revisions to accommodate emerging products,” Kellogg concluded.
Florida TaxWatch has also argued the legislation is sound tax policy. This “tax differential” incentives smokers toward less harmful ATR products. The James Madison Institute has offered similar support, noting a recent piece in its academic journal written by the Tax Foundation that explains the science and policy framework of “risk-based taxation.”
John Tamny, president of the conservative Parkview Institute and editor of Real Clear Markets, went a step further and characterized a lack of action on SB 1418/ HB 785 akin to a stealth tax on consumers in the state. His point was that the legislation provided needed market clarity and that a lack thereof increased costs that would likely be passed along to consumers. He urged lawmakers to take action to address the issue proactively during a House Industries and Professional Activities Committee this week.
While free market conservative groups are mobilizing this week to protect the tax-free environment in Florida. The retail community has also been active on the issue as well. Both the Florida Retail Federation and the Florida Petroleum Marketers Association are actively supporting the legislation, arguing retailers need clarity.
