Close the Brown Cigarette Tax Loophole

Close the loophole that currently allows brown cigarettes to be taxed at a lower rate than traditional cigarettes and require these products to be placed behind the retail counter.

What is a brown cigarette?
Brown cigarettes are similar in size and shape to traditional cigarettes but are wrapped in brown paper that contains some tobacco leaf. They are often sold in cigarette-like packs and generally have a filter like a cigarette. Some brown cigarettes contain candy and fruit flavoring such as strawberry and grape which appeal to youth.

Current Wisconsin law taxes brown cigarettes less than other comparable products.
While brown cigarettes look nearly identical to traditional cigarettes, because they are wrapped in brown paper containing some tobacco they are taxed as a percentage of their wholesale price rather than on a per-pack basis. This tax loophole means a pack of 20 brown cigarettes may be taxed as low as $0.78 per pack, depending on its wholesale price, while a pack of 20 cigarettes is taxed at $2.52 per pack.  Because of lower taxes, brown cigarettes cost much less than traditional cigarettes, making them affordable for young smokers.  

Growing use among Wisconsin youth.
Brown cigarettes are dangerous to our health, yet sales are increasing and use by youth is rising. In 2013, just as many Wisconsin high school students reported smoking cigars, brown cigarettes and cigarillos (11.5%) as reported smoking traditional cigarettes (11.8%). Cigar use is most common among high school boys with over 30% of 12th grade boys in Wisconsin reporting smoking cigars, brown cigarettes and cigarillos.ii 

A Common Sense Solution

• Brown cigarettes are the same size and shape as traditiional cigarettes. They have a filter and come in packs of 20 just like traditional cigarettes.
• Brown cigarettes are wrapped in brown paper containing some tobacco, which creates a loophole allowing them to be taxed less than traditional cigarettes.
• Brown cigarettes can cost significantly less than traditional cigarettes.
• They appeal to kids because they are cheaper and come in flavors such as grape, cherry, strawberry, and chocolate.

Support the proposal to tax brown cigarettes at the same rate as traditional cigarettes.

The current tax loophole unfairly gives brown cigarettes favorable treatment.

Support closing the brown cigarette tax loophole by taxing brown cigarettes at the same rate as traditional cigarettes.