Tax Loophole in Wisconsin Needs Attention

It is common knowledge that tobacco tax increases provide a win-win-win solution for states. Every 10% increase in cigarette prices helps to reduce youth smoking by 7%, offering a health benefit. By increasing cigarette taxes, states enjoy substantial increases in revenue. Finally, the public supports these initiatives. Voters prefer raising tobacco taxes to other tax increases or reducing important education or public safety programs.

What may not be common knowledge is a loophole in Wisconsin law. Did you know some tobacco products are taxed less than cigarettes? Classified as "other tobacco products", these little cigars are functionally cigarettes, but are treated differently. "Other tobacco products" have no state law forcing them to be sold behind the counter. With a range of fruit flavors, they are intentionally made to look and smell like candy, but the truth is these are still dangerous tobacco products.

Last May, pollsters found that nearly 8 in 10 voters favor a behind-the-counter proposal for candy flavored tobacco and 71% want to see all tobacco products taxed the same as cigarettes. We know this will be a win-win-win for Wisconsin, so let’s all support ongoing efforts towards legislative action to close tobacco loopholes.


Written by guest blogger Kim Hageman, author of Surviving Oshkosh