Developments in Federal Tobacco Tax Legislation - 2005

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Developments in Federal Tobacco Tax Legislation - 2005. Celeste Drake Office of U.S. Rep. Lloyd Doggett. Coble Amendment SToP Act (H.R. 1377) Non-Mailable Tobacco Act (H.R. 1328) Non-Reintroduced Bills Other Congressional Priorities. Coble Amendment. - PowerPoint PPT Presentation

Transcript of Developments in Federal Tobacco Tax Legislation - 2005

  • Developments in Federal Tobacco Tax Legislation - 2005Celeste DrakeOffice of U.S. Rep. Lloyd Doggett

  • Coble AmendmentSToP Act (H.R. 1377)Non-Mailable Tobacco Act (H.R. 1328)Non-Reintroduced BillsOther Congressional Priorities

  • Coble Amendment Attached to the Patriot Act Reauthorization (H.R. 3199) during the House floor debate Nearly identical to Section 4 of the PACT Act, which has not been reintroduced for the 109th Congress Supported by the tobacco industry (Philip Morris)

  • Coble Amendment

    Amends the CCTA by: lowering threshold to 10,000 from 60,000 cigarettes covering smokeless tobacco in excess of 500 single-unit cans or packages

  • Coble Amendment

    Amends the CCTA by: Requiring sellers, shippers, and distributors who reach the 10K threshold in a single month to submit detailed reports to the US AG, Treasury Secretary, and state and tribal AGs and tax administrators

  • Coble Amendment

    Defines a delivery sale as a sale in interstate commerce if consumer is not in the same physical location as seller when the order is placed (e.g., phone or internet order); and not in the same place as the seller when delivery is made (e.g., delivery through mail or common carrier).

  • Coble Amendment

    Directs that seized products be destroyed or used for undercover operations Authorizes state AGs and local governments to bring actions in federal court to prevent and restrain violations of the CCTA and obtain other appropriate relief Exempts tribal entities fromlegal action

  • Coble Amendment

    Contains a non-preemption provision that makes clear that the law is not intended to modify or restrict the right of state or local governments to pursue other remedies Floor Statement was a good sign Amdmt removed from Senate version Fate unclear

  • Smuggled Tobacco Prevention Act (H.R. 1377 - Doggett)Basic purpose is to change labeling and reporting requirements to make smuggled cigarettes easier to identifyAmends:The Internal Revenue CodeThe Jenkins ActContraband Cigarette Trafficking ActWhistleblower provisions of Labor Code

  • Smuggled Tobacco Prevention Act (Labeling Requirements)All tobacco product packages must have a unique serial numberProducts manufactured for export must state nation of final destinationProducts to be sold on Indian Reservations must so state

  • Smuggled Tobacco Prevention Act (CCTA Amendments)Applies to quantities in excess of 2,000 cigarettes (Compare: 10,000 in Coble Amendment)Makes it unlawful to alter markings, interfere with inspections, transport under false or no bill of lading, or to fail to maintain reports

  • H.R. 2813, to make tobacco products non-mailable (Rep. McHugh)Introduced in June w/3 cosponsorsMakes it unlawful to mail cigarettes, smokeless, pipe, and roll-your-own tobaccoAllows USPS discretion regarding how to dispose of prohibited productsViolations are civil, not criminal

  • Bills Not Yet ReintroducedPACT Act (Senators Kohl and Hatch)Internet Tobacco Sales Enforcement Act (Green and Meehan)

  • PACT ActStalled because of common carrier (e.g., UPS and FedEx) opposition to the requirement that they use compliant and non-compliant seller listsBut these provisions form the heart of the legislation; without the lists, impact of bill would be mild to moderate, at best

  • PACT ActTobacco health groups are working with Kohl and Hatch offices and other interested parties to reach a compromiseIf you are interested in seeing the PACT Act progress, please contact Senators Kohl, Hatch, or other members of the Senate Judiciary Committee to express your interest

  • Green-Meehan ActGreen was leading force behind this bill, but may have lost interest due to difficulty of negotiating the tribal sovereignty mazeConvenience stores, leading supporters of this bill, want to eliminate competition from tribal sales, but any changes that affect tribal sovereignty add oppositionPACT, SToP Acts leave tribal sovereignty as is

  • Green-Meehan ActMeehan and Platts, Chairs of the House Task Force on Tobacco and Health, have new tobacco staffers since my last presentation; this seems to have affected the activity of the Task Force

  • What is Congress working on if not tobacco taxation issues?

  • Hurricane Katrina

  • Appropriations & Budget Reconciliation

  • Social Security Privatization

  • Energy Prices and Oil Drilling

  • Estate Tax Repeal and Other Tax Cuts

  • OutlookCoble Amendment has best chance of becoming law, and would provide an opening for the PACT Act if the parties can reach an agreementWithout the support of more committee chairpersons, the Doggett and McHugh bills have smaller chance of success this Congress

  • Questions?Call 202-225-4865 or e-mail [email protected]