Update on Ohio Legislative Agenda and Taxation

A message from Cresha Auck Foley, Americanm Heart Association, reposted at http://www.tobaccodeathray.blogspot.com,

 

"I wanted to make sure everyone had an update on the Ohio Budget and the tobacco components that we have all been working on.

As you know, an amendment was submitted by Sen. Jones to equalize the Other Tobacco Products Tax with the cigarette tax and use some of the revenue for tobacco prevention funding.  We had great support from all of you and great support from key members in the Senate.

Unfortunately, the amendment didn’t make it into the Senate passed version of the budget…but neither did any of the tax issues.  Instead, the decision was made to work out all of the tax related pieces in conference committee.  This gave us hope for a favorable solution.

Last week, the new version was unveiled.  While I am sad to report there isn’t a total equalization of OTP nor an additional designation of money for tobacco prevention funding, I am happy to report a couple of key things that give us momentum.

·         First, there is language to reclassify cigarillos and tax them at the same rate as cigarettes.  This is a win for several reasons.  Obviously, it does increase the tax on something that for all practical purposes is a cigarette.  In addition, this discussion has been around and has been discussed as part of a switch to weight based taxation for OTP.  While we will still need to watch out for weight base, I think this makes it a little easier for us!

·         In addition, there is a provision to magazine sales.  While unrelated to our work, they are changing how magazines are taxed by using our justification for the OTP tax.  I think it is safe to say, they are hearing our message!

·         Lastly, through all of the budget hearings, we have more members openly vocal about the problem of tobacco use and the need for real dollars.  While we have heard support behind closed doors the last few years, every hearing now has questions around it.  We know during the hearings on Medicaid Reform, this came up again. 

Although, the budget may not give us what we want, all of this is a huge step forward.  The grassroots perseverance has made this possible!  You have made this possible.  Please know work continues to encourage a solution through the budget, but there is also great optimism as we move forward. 

We’ll keep you posted if we hear anything else and hope to see everyone at the Tobacco Free Ohio Alliance on July 9^th!"

Cresha Auck Foley, MA
Government Relations Director, Ohio

American Heart Association/American Stroke Association