Tobacco Taxes Vermont's excise tax per pack of cigarettes: $1.190 Vermont's excise tax collection for the fiscal year ending June 2002: $25,084,000 Sales tax on tobacco products: 5.00% Federal excise tax per pack of cigarettes: $0.39 Total federal excise tax collections in fiscal year 2002: $7,512,700,000

Who Profits from Cigarette Sales? click for larger view

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Number of six-packs of beer that must be sold in Vermont to produce the same state excise tax revenue generated by one carton of cigarettes: 62.4

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Number of bottles of wine that must be sold in Vermont to produce the same state excise tax revenue generated by one carton of cigarettes: 85.3

Vermont Smokers' Contributions
to the State Economy - FY2002

Smokers Pay Excise Taxes2	$	25,084,291
Smokers Pay Sales Taxes2	$	9,691,658
Smokers Pay Tobacco Settlement Payments3	$	29,422,578
	$	64,198,527

• Income1

Vermont smokers' median household income	$	31,911
Vermont nonsmokers' median household income	$	43,027

• Working Families Pay More1

38.6% of Vermont smokers had household income LESS THAN $25,000




6.0% of Vermont smokers had household income EQUAL TO or GREATER THAN $75,000




The impact of smoker payments on the incomes of working families was more than THREE TIMES the impact on higher income smokers. Those who can afford it least pay a disproportionate percentage of their hard-earned income in smoker payments.

• Smoker excise tax/sales tax/tobacco settlement payments liability in 20024

Total average paid per Vermont smoker in excise and sales taxes	$	336
Cost per Vermont smoker for settlement payments to Vermont	$	285
Total annual payments to Vermont per smoker	$	621
Total annual payments to Vermont per nonsmoker	$	0

TOTAL SMOKER CIGARETTE PAYMENTS TO VERMONT FY2002 Per year: $ 64,198,527 Per day: $ 175,766 Per hour: $ 7,324 Per minute: $ 122 Per second: $ 2

1 Centers for Disease Control's Behavioral Risk Factor Surveillance System, 2001
2 Orzechowski & Walker, Arlington, Virginia; from state revenue department.
3 PriceWaterhouseCooper
4 U.S. Census Bureau, 2000 state population and Centers for Disease Control's Behavioral Risk Surveillance System, 2001
5 Tax and Budget Comparisons are from U.S. Census Bureau and State of Vermont, Department of Finance and Management, "Fiscal Year 2003 Executive Budget Recommendations." Online at: http://www.state.vt.us/fin/Fin%20Budget%20Documents/2003%20ebr.pdf.

A summary of Vermont state law is provided below
(for specific questions regarding state law, contact your legal advisor.)

Minimum Age	Customers must be 18 years or older to purchase tobacco products. The sale and the purchase of bidis is prohibited. A person who holds a tobacco license who sells bidis as prohibited by this subsection shall be fined not more than $500. A person who purchases bidis from any source shall be fined not more than $250. No person holding a tobacco license shall sell cigarettes individually or in packs that contain fewer than 20 cigarettes
Restricted Products	Tobacco products including cigarettes, cigars, smoking tobacco, snuff and chewing tobacco.
Acceptable Forms of Identification	A photographic motor vehicle operator's license, a valid passport, a United States Military identification card or a photographic non-driver motor vehicle identification card, obtained from the department of motor vehicles.
Fine/Penalty Schedule for Selling to Minors	Violators will be fined up to $100 for the first offense and up to $500 for any subsequent offense. The Liquor Control Board may impose an administrative penalty against a holder of a tobacco license for up to $100 for a first violation and up to $1,000 for subsequent violations. In addition, for the first violation during a tobacco or alcohol compliance check during any three-year period,a licensee shall receive a warning and be required to attend a department server training class. A person shall exhibit proper proof of his or her age upon demand of a licensee, an employee of a licensee or a law enforcement officer. If the person fails to provide such proof of age, the licensee shall be entitled to refuse to sell tobacco products to the person. The holder of a tobacco license that does not also hold a liquor license for the same premises shall: (1) complete the department's enforcement seminar at least once every three years (2) ensure that every employee involved in the sale of tobacco products completes a training program approved by the Department of Liquor Control before the employee begins selling or providing tobacco products, and at least once every 24 months thereafter. A licensee may comply with this subdivision by conducting its own training program on its premises using information and materials furnished by the Department of Liquor Control. A licensee who fails to comply with the requirements of this subsection shall be subject to suspension of the tobacco license for no less than one day.
Affirmative Defense	The sale or furnishing of tobacco products to a person exhibiting proper proof shall be a defense.
Minor Possession	The purchase or possession of tobacco products by minors is prohibited unless the person is an employee of a tobacco licensee and possesses the tobacco products in the course of employment. A person who possesses tobacco products in violation of these rules is subject to immediate confiscation of the tobacco products and a fine of $25. Failure to pay the fine within the specified period could lead to suspension of the violator’s driver’s license for up to 90 days. A person less than 18 years of age who misrepresents his or her age by presenting false identification to purchase tobacco products shall be fined up to $50 and/or provide up to 10 hours of community service.
Sign Requirement	A plainly printed copy of the provisions of the state law must be conspicuously posted on the premises identified in the tobacco license. Failure to post state law is a misdemeanor and will result in fine of up to $100.
Compliance Checks	As a condition of receiving federal substance abuse block grant funds, federal law requires the State of Vermont to conduct random, unannounced inspections of tobacco outlets to determine compliance rates. Minors, ages 15 - 17, may be used in these inspections under the direct supervision of law enforcement officials with prior written consent of a parent or guardian. The Department of Liquor Control will coordinate inspections.
DISCLAIMER: This information summary is provided as a service of the Coalition, but is not intended to provide legal advice or analysis. These summaries are not intended to be complete representations of state law, which may contain additional rules and restrictions relating to tobacco products not mentioned in this summary, as well as retailing prohibitions related to matters including, but not limited to, state required training, minimum pack size, the sale of loose cigarettes and other restrictions. Retailers should not rely on these summaries as complete or accurate descriptions of applicable federal, state or local law. Users with questions about the law should seek the advice of counsel. Each state law is unique and possibly represents multiple legislative or regulatory acts. Local laws may differ. Check with local authorities for variations from state law. These summaries are not intended to be complete representations of state law.

The reprinting of this information from the Coalition, does not constitute a representation or admission by RJRT that such information is accurate, complete, or a proper characterization of the laws concerned. The Coalition for Responsible Tobacco Retailing is a cooperative effort among retailers, wholesalers and manufacturers who share a common goal: to do all they can to prevent tobacco sales to minors.

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