Tobacco Taxes Pennsylvania's excise tax per pack of cigarettes: $1.350 Pennsylvania's excise tax collection for the fiscal year ending June 2002: $331,645,000 Sales tax on tobacco products: 6.00% Federal excise tax per pack of cigarettes: $0.39 Total federal excise tax collections in fiscal year 2002: $7,512,700,000

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Number of six-packs of beer that must be sold in Pennsylvania to produce the same state excise tax revenue generated by one carton of cigarettes: 222.2

Pennsylvania Smokers' Contributions
to the State Economy - 2002

Smokers Pay Excise Taxes2	$	331,645,347
Smokers Pay Sales Taxes2	$	202,804,803
Smokers Pay Tobacco Settlement Payments3	$	411,219,801
	$	945,669,951

• Income1

Pennsylvania smokers' median household income	$	33,807
Pennsylvania nonsmokers' median household income	$	41,302

• Working Families Pay More1

36.3% of PA smokers had household income LESS than $25,000




10% of PA 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 Pennsylvania smoker in excise and sales taxes	$	233
Cost per Pennsylvania smoker for settlement payments to Pennsylvania	$	179
Total annual payment to Pennsylvania per smoker	$	412
Total annual payment to Pennsylvania per nonsmoker	$	0

TOTAL SMOKER CIGARETTE PAYMENTS TO PENNSYLVANIA   Per year: $ 945,669,951 Per day: $ 2,589,103 Per hour: $ 107,879 Per minute: $ 1,798 Per second: $ 30

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 the U.S. Census Bureau and The Commonwealth of Pennsylvania, Governor's Office of the Budget, 2002-03 General Fund Enacted Budget Overview. Online at http://www.budget.state.pa.us/budget/cwp/browse.asp?A=3&BCOB=0&C=19265.
6 American Economics Group, Inc., The U.S. Tobacco Industry in 1997: Its Economic Impact in the States.

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

Minimum Age	Customers must be 18 years or older to purchase tobacco products. Displaying or offering a cigarette for sale out of a pack of cigarettes is prohibited.
Restricted Products	A cigarette, cigar, pipe tobacco or other smoking tobacco product or smokeless tobacco in any form, manufactured for the purpose of consumption by a purchaser and any cigarette paper or product used for smoking tobacco.
Acceptable Forms of Identification	Photo driver's license or identification card issued by the Department of Transportation or by any other state, armed forces identification card, valid passport or a travel visa issued by a foreign country that contains the holder's photograph.
Fine/Penalty Schedule for Selling to Minors	Violators will be subject to a fine of $100 - $250 for a first offense; $250 - $500 for a second offense; or $500 - $1,000 for subsequent offenses. A retailer that violates this provision shall be sentenced to pay a fine of $100 - $500 for a first offense; $500 - $1,000 for a second offense; $1,000 - $3,000 for a third offense; or $3,000 - $5,000 for subsequent offenses. Upon a third conviction of a retailer during any 24-month period, the department may suspend the retailer's cigarette license for up to 30 days. For a fourth conviction of a retailer during any 24-month period, the department may revoke the retailer's cigarette license for up to 60 days.
Affirmative Defense	A retailer is liable for the acts of its agents. However, it is an affirmative defense for a retailer that, prior to the date of the alleged violation, the retailer complied with all of the following: (a) adopted and implemented a written policy against selling tobacco products to minors which includes: a requirement that an employee ask an individual who appears to be 25 years of age or younger for a valid photo identification as proof of age prior to making a sale of tobacco products; a list of all types of acceptable photo identification; a list of factors to be examined in the photo identification, including photo likeness, birth date, expiration date, bumps, tears or other damage and signature; a requirement that if the photo identification is missing anything, it is not valid and cannot be accepted as proof of age for the sale of tobacco products (a second photo identification may be required to make the sale of tobacco products with questions referred to the manager); and a disciplinary policy which includes employee counseling and suspension for failure to require valid photo identification and dismissal for repeat improper sales. (b) informed all employees selling tobacco products through an established training program of the applicable federal and state laws regarding the sale of tobacco products to minors; (c) documented employee training indicating that all employees selling tobacco products have been informed of and understand the written policy; (d) trained all employees selling tobacco products to verify that the purchaser is at least 18 years of age before selling tobacco products; (e) conspicuously posted a notice that selling tobacco products to a minor is illegal, that the purchase of tobacco products by a minor is illegal and that a violator is subject to penalties; and (f) established and implemented disciplinary sanctions for noncompliance. An affirmative defense under this paragraph may be used by a retailer no more than three times at each retail location during any 24-month period.
Minor Possession	Minors are prohibited from purchasing or attempting to purchase a tobacco product or knowingly falsely represents himself to be at least 18 years of age to a person for the purpose of purchasing or receiving a tobacco product. Violators shall be sentenced to any or all of the following: up to 75 hours of community service; completion of a tobacco use prevention and cessation program approved by the department of health; a fine not to exceed $ 200; or a 30-day suspension of motor vehicle operating privileges.
Sign Requirement	There is not a state mandated sign requirement.
Compliance Checks	As a condition of receiving federal substance abuse block grant funds, federal law requires the Commonwealth of Pennsylvania to conduct random, unannounced inspections of tobacco outlets to determine compliance rates.
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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