NEW YORK -- Every week, Cowen tobacco analyst Vivien Azer outlines breaking news in the tobacco industry, from taxation to new-product approvals to proposed regulations. Here are three news items to watch from the week ending Feb. 26, 2016:
1. State Cigarette-Excise-Tax Increases
West Virginia’s senate has passed a bill that would raise the cigarette excise tax by $1.00 to $1.55 per pack. The bill will now be sent to the state's House Finance Committee for consideration. Subcommittees in Indiana and Hawaii issued pass recommendations for similar bills.
“Considering ballot initiatives, and bills proposed or within governor's budgets, we estimate the weighted average state excise tax would increase 18.4% in the second half of 2016, compared to 2015 year-end rates, if all are passed,” Azer said.
2. West Virginia E-Cig Excise Tax
Last week, representative Barbara Fleischauer (D) introduced a bill that would tax electronic cigarettes and vapor products at 7% of the wholesale price. The bill was sent to West Virginia’s House Committee on Health and Human Resources for consideration.
3. New Jersey Minimum-Age Increase
The New Jersey Health and Senior Services Committee passed a bill to raise the minimum age to purchase tobacco and e-cigs from 19 to 21. Earlier this year Gov. Chris Christie (R) vetoed a similar bill to increase the minimum purchase age.
Meanwhile, Connecticut introduced a similar “21” bill, while Iowa and Mississippi rejected measures to increase the minimum purchase age.
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