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Legislative Issues - U.S. Smokeless Tobacco Company

Characterizing Flavors

In recent years, some in the public health community have expressed concern that tobacco products with characterizing flavors other than tobacco are packaged, advertised, and marketed in a manner that may appeal to youth.

Visit altria.com to learn more about Characterizing Flavors.

Illicit Trade

As excise taxes increase, so does the price of tobacco products. Criminal organizations exploit these higher costs by selling smuggled counterfeit, illegally-imported and stolen tobacco products for their own financial gain. This illicit trade is a concern for our business, law enforcement and regulatory authorities, as well as the legitimate wholesale and retail trade. This illicit activity deprives governments of tax revenue and hurts law-abiding businesses.

Visit altria.com to learn more about Illicit Trade.

Excise Taxes

Methods

Many states tax smokeless tobacco products using the “ad valorem” method of taxation—a percentage of the wholesale price. We believe MST products should be taxed by weight.  

USSTC supports weight-based taxation of MST because it will:

  • establish tax equity for MST products of equal tobacco weight;
  • tax MST in the same manner as the federal tax on MST and consistent with how state excise taxes are collected on other products;
  • create a more stable and predictable MST tax revenue for states;
  • reduce the complex administrative burden on states, wholesalers, and retailers; and
  • remove the tax subsidy for lower-priced products.

Increases

USSTC opposes MST excise tax increases that: 1) are unfair to adult tobacco consumers; 2) create additional incentives for contraband and counterfeit tobacco product trafficking;  3) harm states by increasing incentives for adult tobacco consumers to buy tobacco products through lower-tax or untaxed revenues; 4) are costly to legitimate businesses, including retailers and wholesalers; and 5) do little to solve systemic state budget problems and can lead to less stability in the states' finances.

Visit altria.com to learn more about Excise Taxes.

Federal Regulation of Tobacco

USSTC supports reasonable federal regulation of tobacco products by the Food and Drug Administration (FDA). FDA has authority to regulate cigarettes, cigarette tobacco, “roll-your-own” tobacco, smokeless tobacco products, cigars, pipe tobacco and e-vapor products.

Visit altria.com to learn more about Federal Regulation of Tobacco.

Political Action

USSTC believes that active participation at all levels of government is vital to our business and to our democracy. We advocate on policy issues relevant to our company by engaging responsibly with government officials, retailers, wholesalers, suppliers, consumers, employees and many other stakeholders.

Visit altria.com to learn more about Political Action.

Preventing Underage Tobacco Use

Kids should not use tobacco products. As a manufacturer of products intended for adults, USSTC believes that we have an important role to play in preventing underage tobacco use. 

Visit altria.com to learn more about Preventing Underage Tobacco Use.

Sales Bans

USSTC is opposed to legislation that would prohibit certain classes of retail stores from selling tobacco products. Such legislation deprives businesses of the opportunity to sell a legal product,  unfairly shifts business away from some retailers to others—with no public policy benefit—and imposes an unnecessary inconvenience on adult consumers.

Visit altria.com to learn more about Sales Bans.

Tobacco Issues

For information on current legislative and regulatory issues, visit:

 




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