Utah moves from a tax based on the percentage of sales price to one based on the weight - independent of price of smokeless tobacco product..

March 26, 2008 - Utah moves from a tax based on the percentage of sales price to one based on the weight - independent of price of smokeless tobacco product.. The Legislature passed and the governor signed House Bill 356. It changed how "moist snuff" is taxed, from a 35-percent tax on the wholesale price to 75 cents per ounce. In other words, the most-expensive brands formerly bore the heaviest taxes. But imposing one flat rate will bring down the taxes on the pricier brands, and raise them on the cheaper ones. The bill which takes effect May 1, 2008 will lower the cost of premium moist snuff brands like Skoal and Copenhagen. UST (principal subsidiaries: U.S. Smokeless Tobacco Company and Ste. Michelle Wine Estates) the maker of these brands has aggressively pushed for taxing smokeless tobacco on a per-weight basis. According to the Centers for Disease Control and Prevention these premium brands are most preferred by users 12 and older.

Reducing the taxes and as a result the prices would directly increase youth smokeless tobacco initiation and use, dooming even more kids to a lifetime of tobacco addiction, related harms, and premature death. Failing to have different weight-based tax rates for each different type or style of product within the smokeless or moist snuff categories would end up grossly under taxing lighter weight products. Most importantly, the newest trend in smokeless moist snuff products is toward spitless pre-packed single-dose tablets or pouches, such as Ariva and Stonewall lozenges, RJR's Camel Snus, Philip Morris's Marlboro Snus and UST's Skoal Dry. This new generation of smokeless moist snuff tobacco products weigh as little as one-tenth per dose compared to the standard moist snuff that comes in a can. Any switch to a weight-based tax would allow these emerging products to pay almost nothing, thereby sharply reducing state revenues. (THE BEST WAY TO TAX SMOKELESS TOBACCO IS WITH A PERCENTAGE-OF-PRICE TAX)[Weight-Based Taxes Hurt State Revenues and Increase Youth Use], Campaign for Tobacco Free Kids) Related news brief: Wisconsin to Increase Tax on All Tobacco Products.. Click on image to enlarge..