tobacco taxes local taxes in rural alaska. why establish a tobacco tax? prevent youth initiation...
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Tobacco TaxesLocal Taxes in Rural Alaska
Why establish a tobacco tax?
Prevent youth initiation Reduce adult tobacco use Save lives Reduce health care costs Potential revenue for your community
“It's not a hard concept to grasp -- as taxes on cigarettes goes up, sales of cigarettes go down.”
-Convenience Store News, 2009
Price Vs. Consumption
Youth & Tobacco: We can do better
Tobacco taxes are a best practice U.S. Surgeon General Institute of Medicine Centers for Disease Control and Prevention U.S. Community Preventive Services Task
Force National Association of County and City
Health Officials World Health Organization Economic and public health research
And what do tobacco companies say about taxes?
In their own words…
“It is clear that price has a pronounced effect on the smoking prevalence of teenagers, and that the goals of reducing teenage smoking and balancing the budget would both be served by increasing the tax on cigarettes.”
-Philip Morris, 1981
“Of all concerns, there is one - taxation - that alarms us the most. While marketing restrictions and public and passive smoking restrictions do depress volume, in our experience taxation depresses it much more severely.”
-Philip Morris, 1985
“Together with manufacturers’ price increases in recent years and substantial increases in state and federal taxes on tobacco products, these developments have had and will likely continue to have an adverse effect on the sale of tobacco products.”
-Reynolds American Inc., 2011
What does the research say?
How much tax?
Every 10% increase in the cigarette price
Reduces smoking by: 6-7% among kids 3.5% among young adults 3-5% overall
What kind of tax?
Unit based tax Ad valorem tax (percentage) Weight based
Local tobacco taxes in Alaska
In 2011, three Alaskan communities passed new tobacco taxes
Anchorage ($0.75/pack) Klawock Tribe (insert) Seward (8%)
Potential for Local Revenue
In 2006, The Campaign for Tobacco Free Kids estimated that a $1 tax on cigarettes in Bethel would raise $297,000, result in 23,000 fewer packs of cigarettes smoked and reduce youth smoking by 11.4%.
Who can pass a tax?
City or Tribal Council - Vote of the council
The People - Ballot initiative
The Policy Change Process
Resources
www.TobaccoFreeAlaska.org Tobacco Free Alaska on Facebook The Rede Group - Robb Hutson robb.
[email protected] 971-645-0381