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 Pennsylvania tax on pipe tobacco -- what will retailers do?

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forsooth

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Registration date : 2011-01-12

PostSubject: Pennsylvania tax on pipe tobacco -- what will retailers do?   Thu Sep 15, 2016 5:38 pm

I'm wondering what Pennsylvania pipe tobacco retailers will do to stay competitive as they face the ridiculous and onerous new tax (55 cents per ounce) on pipe tobacco?

Could they move their tobacco packaging operations (e.g., contract out the packaging and posting) to another state, and continue all other operations in their same Penn. location?

According to what I've read (I'm in North Carolina), the democrat legislative body passed the tax, which was then signed by a republican (at least in name) governor.

I'm also wondering how cigars escaped the tax?
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Ozark Wizard

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Age : 53
Location : Mark Twain National Forest, MO
Registration date : 2014-10-11

PostSubject: Re: Pennsylvania tax on pipe tobacco -- what will retailers do?   Thu Sep 15, 2016 6:18 pm

What will they do? I guess what any other retailer would do, pass it along to the consumer, of course.

How did cigars get missed? Good lobbying....

Perhaps if they move their base of operations, to somewhere else without the taxes and restrictions, perhaps they will only be liable to pay those taxes in Pennsylvania sales. It doesn't seem like anyone is talking about doing that though....
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monbla256

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Location : DFW Metroplex, Texas
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PostSubject: Re: Pennsylvania tax on pipe tobacco -- what will retailers do?   Thu Sep 15, 2016 7:48 pm

forsooth wrote:
I'm wondering what Pennsylvania pipe tobacco retailers will do to stay competitive as they face the ridiculous and onerous new tax (55 cents per ounce) on pipe tobacco?

Could they move their tobacco packaging operations (e.g., contract out the packaging and posting) to another state, and continue all other operations in their same Penn. location?

According to what I've read (I'm in North Carolina), the democrat legislative body passed the tax, which was then signed by a republican (at least in name) governor.

I'm also wondering how cigars escaped the tax?

You ask how cigars were passed over, well I would imagine more legislators from the governor down smoke 'em and wan't to keep the prices down on them !! Twisted Evil Twisted Evil
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forsooth

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PostSubject: Re: Pennsylvania tax on pipe tobacco -- what will retailers do?   Fri Sep 16, 2016 10:13 am

Well, I guess I was originally thinking about bulk pipe tobacco, which is the only way I buy. The 55 cents per ounce amounts to an additional $8.80 per pound.

For folks who regularly pay $5 to $10 per ounce for tinned pipe tobacco, what's another dollar, right?

Perhaps most tobacco retailers in Pennsylvania (who don't sell cigs) depend much more on cigar and tinned tobacco sales anyway.

Maybe it is all sort of "nothing to see here, move along, move along..."
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puros_bran
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Location : Brandenburg, Ky
Registration date : 2007-12-10

PostSubject: Re: Pennsylvania tax on pipe tobacco -- what will retailers do?   Fri Sep 16, 2016 8:52 pm

I remember when Cigar International moved their business to PA to avoid taxation.
Cigar Internationals Subsidiary P&C have some raised prices or moving expenses in the near future. Tough titty if you worked there.
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Carlos
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Location : Chestnut, IL
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PostSubject: Re: Pennsylvania tax on pipe tobacco -- what will retailers do?   Fri Sep 16, 2016 9:36 pm

Isn't this a direct result of cigarette tobacco for roll-your-own being incorrectly marked as pipe tobacco to avoid taxes?

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Ozark Wizard

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Age : 53
Location : Mark Twain National Forest, MO
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PostSubject: Re: Pennsylvania tax on pipe tobacco -- what will retailers do?   Fri Sep 16, 2016 10:41 pm

Carlos wrote:
Isn't this a direct result of cigarette tobacco for roll-your-own being incorrectly marked as pipe tobacco to avoid taxes?

There is that too. I know a lot of folks that stuff tubes with 'pipe tobacco' and roll their own. Gotta close that loophole.
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