WI Tax Changes On Smokeless Tobacco Products

WI Tax Changes On Smokeless Tobacco Products

By KBJR News 1

June 3, 2011 Updated Jun 3, 2011 at 12:55 PM CDT

Duluth, MN (Northland's News Center) - A major change to the Wisconsin tax structure on some smokeless tobacco products is on the horizon.

The Joint Finance Committee approved a provision put forth by Altria Clients Services, the parent company of tobacco giant Philip Morris, that would tax moist snuff, also called chewing tobacco, by weight, not a percentage of what it costs distributors.

Tobacco would be taxed at a rate of a dollar–seventy–six per ounce....or two dollars and eleven cents if it weighed less than one–point–two ounces.

U.S. smokeless tobacco is the largest producer of moist snuff...and includes the brands Copenhagen and Skoal.

Opponents of the effort say switching to a weight–based tax would steer more minors toward tobacco because products would be cheaper for consumers.