As of June 28, 2013, three states have enacted either cigarette and/or tobacco tax rate increases or decreases, reports the National Association of Tobacco Outlets (NATO). The new tax law changes and the respective effective dates are as follows: * Kentucky:House Bill 361 was passed and signed into law which lowers the state tax on…
FDA Issues Fact Sheet On Tobacco Warnings
Six violations in 48 months could result in a $10,000 fine. The FDA has issued a one-page fact sheet titled “Overview: Tobacco Retailer Warning Letters.” The fact sheet explains why warning letters are issued to tobacco retailers, what a retailer needs to do if a warning letter is received and what FDA tobacco regulations apply…
Omaha Seeks 7% Occupation Tax On Tobacco Products
All tobacco products from cigarettes to OTP, including e-cigarettes, and even smoking devices like pipes, would be impacted by the tobacco taxation. The Omaha, Neb. City Council is introducing an ordinance today that if adopted would require an “occupational privilege tax” on tobacco retailers equal to 7% of the gross receipts from the sale of…
FDA Announces New Compliance Check Inspection Notice
If a minor succeeds in purchasing a regulated tobacco product during a compliance inspection, the FDA will now send the retailer a “Compliance Check Inspection Notice” after the inspection occurs. Last week, during an FDA-hosted compliance training Webinar for retailers, the FDA announced it plans to use a new Compliance Check Inspection Notice if a…
TTB Addresses RYO Cigarette Machine Ruling
Anyone manufacturing tobacco products without first obtaining the necessary permit is subject to civil and/or criminal penalties. The federal Alcohol, Tobacco Tax and Trade Bureau (TTB) issued an announcement regarding the impact of the Aug. 20 ruling on RYO cigarette machines by the U.S. Circuit Court of Appeals for the Sixth Circuit, the National Association…
Maintaining Strong Cigar Sales
Despite a demand from adult consumers, retailers are continually forced to defend their right to sell flavored cigars responsibly. By Howard Riell, Associate Editor While tobacco has long been a bread-and-butter product for convenience stores, accounting for millions in individual unit sales and boosting the profits from the average smoker’s market basket, it remains a…
RYO Machine Regulation Takes Effect
Commercial RYO machine operators must comply with the new rules effective immediately. On Friday, July 6, President Barack Obama signed the transportation bill, passed by the U.S. House of Representatives and the U.S. Senate, into law. The bill included a provision that defines commercial RYO machine operators as tobacco manufacturers under federal law. This means…
RYO Regulation Passed
House members voted 373 to 52 in favor of the bill and Senate members voted 74 to 19 to pass the legislation. On Friday, June 29, the U.S. House of Representatives and the U.S. Senate voted to pass a transportation bill that included commercial RYO regulation, the National Association of Tobacco Outlets (NATO) reported. The…
RYO Amendment In Congressional Bill
The House and Senate Conference Committee version of the transportation bill containing the RYO amendment must be voted on by both the full House and the full Senate this week. A new RYO machine amendment has been included in a Congressional transportation bill, the National Association of Tobacco Outlets (NATO) reported. The U.S. House and…
FDA Scrutiny Clouds Cigar Outlook
While flavored and pre-priced cigar sales are booming, FDA’s pending regulation of the category could upset trends and profits. by Erin Rigik, Associate Editor. Tedeschi Food Shops does a strong cigar business, and with 3-4 feet of space reserved for cigars on the back bar, consumers take notice. Sales on cigars were up for the…