New Hampshire has been chosen as the Free State, and has had an amazing boom of publicity and new signups.
The Year in Perspective.

Tobacco Taxes New Hampshire's excise tax per pack of cigarettes: $0.520 New Hampshire's excise tax collection for the fiscal year ending June 2002: $86,159,000 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 New Hampshire to produce the same state excise tax revenue generated by one carton of cigarettes: 30.8

New Hampshire Smokers' Contributions
to the State Economy - FY2004

In 2003, New Hampshire smokers comprised only 21.2% of the adult population in the state.  Here is what they already pay because they choose to buy a legal product:

• Smokers Pay Excise Taxes                                                                                      $99,326,000


• Smokers Pay Tobacco Settlement Payments                                                        $41,400,000

                                                                                                                                               $140,726,000

Smokers’ Economic/Tax Profile 2003

·         Income

Ø      New Hampshire smokers’ median household income                                                $41,400

Ø      New Hampshire nonsmokers’ median household income                                         $53,900

·         Working families pay more

Ø      27% of New Hampshire smokers had household incomes LESS THAN $25,000

Ø      19% of New Hampshire smokers had household incomes 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/tobacco settlement payments liability in FY2004

Ø      Total average paid per New Hampshire smoker in excise taxes   $505

Ø      Cost per New Hampshire smoker for settlement payments to New Hampshire  $211

Total annual payments to New Hampshire per smoker   $716

            Total annual payments to New Hampshire per nonsmoker     $0

New Hampshire Smoker Facts

·         Total smokers’ payments in New Hampshire in FY2004 were:

Ø      More than 11 times as large as FY2004 state beer taxes ($12.4 million).

Ø      Larger than FY2004 liquor sales and distribution tax revenues ($106.7 million).

Ø      Nearly three times as large as FY2004 interest and dividend taxes ($55.6 million).

Ø      More than five times as large as FY2004 estate and legacy taxes ($26.9 million).

·         New Hampshire FY2004 smoker payments were larger than FY2004 budgeted amounts for:

Ø      The Office of Community and Public Health ($70.4 million)

Ø      The Department of Safety ($105.6 million)

Ø      The Department of Corrections ($82.8 million)

Ø      The Division of Children, Youth, and Families ($122.6 million)

Ø      The New Hampshire Community Technical College System ($78.1 million)

Ø      The New Hampshire University System ($83.4 million).

TOTAL SMOKER CIGARETTE PAYMENTS TO NEW HAMPSHIRE FY2004 Per year:        $140,726,000 Per day:          $       385,287 Per hour:        $         16,054 Per minute:    $              268 Per second:   $                  4

 

CIGARETTES DON’T PAY TAXES – NEW HAMPSHIRE SMOKERS DO!!

Smokers Pay Excise Taxes2	$	95,760,000
Smokers Pay Tobacco Settlement Payments3	$	48,575,000
	$	144,335,000

• Income1

New Hampshire smokers' median household income	$	38,995
New Hampshire nonsmokers' median household income	$	52,732

• Working Families Pay More1

28% of New Hampshire smokers had household income LESS THAN $25,000




16% of New Hampshire 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/tobacco settlement payments liability in 20024

Total average paid per New Hampshire smoker in excise and sales taxes	$	445
Cost per New Hampshire smoker for settlement payments to New Hampshire	$	226
Total annual payments to New Hampshire per smoker	$	671
Total annual payments to New Hampshire per nonsmoker	$	0

TOTAL SMOKER CIGARETTE PAYMENTS TO NEW HAMPSHIRE FY2003 Per year: $ 144,335,000 Per day: $ 395,168 Per hour: $ 16,465 Per minute: $ 274 Per second: $ 5

1 Centers for Disease Control's Behavioral Risk Factor Surveillance System, 2002
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, 2002
5 Tax Comparisons are from the New Hampshire Comptroller, New Hampshire Comprehensive Financial Report for FY2003, online at http://www.state.nh.us/treasury/Divisions/DM/2003%20CAFR.pdf. Cigarette tax revenues and tobacco settlement revenues are divided between the general and education funds. Additional taxes reflect unrestricted revenues in the general fund, except for the gasoline tax, which is an unrestricted revenue source in the highway fund. Budget Comparisons are from the NH Department of Administrative Services, Governor's Operating Budget 2004-05, and reflect adjusted authorizations. Online at http://admin.state.nh.us/budget/budget03_01.pdf#LCHIP.

A summary of New Hampshire 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. Causing, allowing or providing tobacco products to be sold, given or furnished to persons under age 18 is prohibited. No person shall sell, give, or furnish tobacco products to a minor who has a note from an adult requesting such sale, gift, or delivery.
Restricted Products	Any product containing tobacco including, but not limited to, cigarettes, smoking tobacco, cigars, chewing tobacco, snuff, pipe tobacco, smokeless tobacco, and smokeless cigarettes. No person shall sell, give, or furnish rolling papers to a minor. Violation is a civil infraction punishable by administrative action against the licensee. Fines shall not exceed $250 for the first offense, $ 500 for the second offense, and $ 750 for the third and subsequent offenses.
Acceptable Forms of Identification	A motor vehicle driver's license issued by the state of New Hampshire, or a valid driver's license issued by another state, or province of Canada, which bears the date of birth, name, address, and picture of the individual; an identification card issued by the director of motor vehicles, or any picture identification card issued by another state which bears the date of birth, name, and address of the individual; an armed services identification card; or a valid passport from a country with whom the United States maintains diplomatic relations. Photographic identification presented under this section shall be consistent with the appearance of the person, and shall be correct and free of alteration, erasure, blemish, or other impairment.
Fine/Penalty Schedule for Selling to Minors	Violation is a civil infraction punishable by administrative action against the licensee. The fines shall not exceed $250 for the first offense and $500 for the second offense. For the third offense, the commission shall issue a letter of warning detailing necessary corrective actions and an administrative fine ranging from $500 to $1500. In addition, the license to sell tobacco products where the offense occurred shall be suspended for a period of 10-30 consecutive days. For the fourth offense, the commission shall issue either an administrative fine and a suspension of a minimum of 10-40 consecutive days, or a suspension. The administrative fine shall range from $750 to $3,000 while any suspension without a fine shall be 40 consecutive days. For any violation beyond the fourth, the commission shall revoke any license for the business or business entity at the location where the infraction occurred for a period of one year from the date of revocation. In addition to the civil penalty, a person who violates this section shall be guilty of a violation for the first offense and a misdemeanor for each subsequent offense
Affirmative Defense	It is a defense to prosecution if the purchaser falsely represented that he or she was at least 18 years of age, a reasonable person would believe that the purchaser was at least 18 years of age and the sale was made in good faith relying on documentation and the appearance of the purchaser. Any person making the sale of tobacco products, which sale is to be made to any person who does not appear to be at least 18 years of age, shall require the purchaser to furnish identification. (*effective 1/1/03) Any person selling alcohol or tobacco who uses due diligence in checking identification to prevent unauthorized sales and purchases of alcohol and tobacco shall not be held responsible for the acceptance of fraudulent identification. Where due diligence is exercised on the part of the seller, the unauthorized purchaser shall be liable for any penalty or fine resulting from the unauthorized sale.
Minor Possession	Purchase, attempted purchase, possession or use of tobacco products by minors is prohibited unless the minor’s possession of tobacco is necessary to employment. Misrepresenting age for the purpose of obtaining tobacco products is also prohibited. Violators are subject to a fine of $100 or 20 hours of community service for each offense and may also be required to participate in an educational program. No person under 18 years of age shall purchase, attempt to purchase, possess, or use any rolling paper. Any minor who violates this section shall be guilty of a violation and shall be punished by a fine not to exceed $100 for each offense.
Sign Requirement	A sign must be posted at any location where tobacco products are sold or distributed which states: STATE LAW PROHIBITS THE SALE OF TOBACCO PRODUCTS TO PERSONS UNDER AGE 18 AND THE PURCHASE, POSSESSION OR USE OF TOBACCO PRODUCTS BY PERSONS UNDER AGE 18. WARNING: VIOLATORS OF THESE PROVISIONS MAY BE SUBJECT TO A FINE.
Compliance Checks	As a condition of receiving federal substance abuse block grant funds, federal law requires the State of New Hampshire to conduct random, unannounced inspections of tobacco outlets to determine compliance rates. The Liquor Commission coordinates the 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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