Health advocates urge Whitmer to veto tobacco tax bill | Crain's Detroit Business

2022-07-23 08:01:10 By : Ms. Venyia Wang

LANSING — Public health officials are urging Gov. Gretchen Whitmer to veto legislation that would cut state taxes on a type of smokeless tobacco, a low-nicotine cigarette and a heat-not-burn cigarette alternative that federal regulators allow to be marketed as less harmful than more traditional products.

Michigan taxes cigarettes at $2 a pack and many tobacco products at 32 percent of the wholesale price. The taxes would be reduced by 50 percent or 25 percent depending on what sort of past or future "modified risk tobacco product order" is issued by the Food and Drug Administration.

"This bill puts the needs of the tobacco industry over what is good for Michigan kids," the Keep MI Kids Tobacco Free Alliance wrote in a letter to the governor last week. "Lowering the tax rate on so-called modified-risk tobacco products only makes them more affordable and easier to access. This change WILL get more of these products into the hands of our youth and worsen our youth tobacco epidemic."

So far, the FDA has in recent years authorized three sets of products to get the special designation. The first was Swedish Match USA Inc.'s niche pouches of ground tobacco called snus. The second was Philip Morris Products' electronic IQOS "heatstick" devices, which heat but do not burn cigarette-like sticks of tobacco. IQOS differs from electronic cigarettes, which heat a flavored nicotine solution and do not contain tobacco. The third was 22nd Century Group Inc.'s low-nicotine cigarettes.

Other applications are pending with the FDA, which says applicants must show their product will or is expected to benefit the health of the population as a whole.

The Michigan measure, which is a broad update to the Tobacco Products Tax Act, is tied to legislation that would raise the state's tobacco purchase age requirement to 21 from 18, aligning with a 2019 federal law. The age change would not take effect if Whitmer vetoes the tax bill, which was approved 78-23 in the House and 38-0 in the Senate.

The sponsor, Republican Sen. Jim Runestad of White Lake, said he has no problem taxing less dangerous products at a lower rate. He said of the opposition: "I don't know what their position is that they think whether a cigarette, which is proven to be extraordinary harmful to the body, should be taxed the same as something that is designed to get people off the cigarettes that's far less harmful."

The coalition of groups pushing for a veto includes county health departments, hospitals, physicians, children's advocates and anti-cancer and other health organizations.

"A signature on SB 720 would lower the barrier of entry of using these dangerous and addictive products and that's the last thing we need in our state," they wrote.

A spokesperson for the governor said she was reviewing the legislation. The deadline to decide is Monday.

Michigan does not have an excise tax on vaping products, and the main bill does not address that issue.

— The Associated Press contributed to this report.

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