MINNEAPOLIS -- On July 2, the National Association of Tobacco Outlets (NATO) launched an effort to urge state lawmakers and governors to tax non-tobacco products if they intend to seek additional revenue to fund programs. According to the group's most recent NATO E-News bulletin, this effort involved mailing a personalized letter to more than 7,100 state legislators and all 50 state governors warning them that an increasing number of states that have raised cigarette and tobacco taxes in the past 18 months have either collected less tax revenue than before the latest tax increase or collected [image-nocss] far less than the estimated amount of additional revenue.
"This initiative represents NATO's greatest effort to date in being proactive to educate state legislators about the negative fiscal ramifications of further increases to cigarette and tobacco tax rates," said NATO president Andy Kerstein.
A point of diminishing returns has now been reached. The letter provides tax collection information from New Jersey, Michigan, Wisconsin, Tennessee, Maine, New Hampshire and Vermont that clearly undermines the pervasive mindset that raising cigarette and OTP tax rates will guarantee an unending steam of revenue.This initiative by NATO will include articles to be published inindustry tradepublications including CSP magazine. NATO also will send letters-to-the-editor to newspapers around the country with the goal of informing elected officials and the public about the need to focus on taxing other products.
Click the Download Now button below to view a copy of the letter.
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