LANSING, Michigan  December 28, 2009 – Michigan smokers will continue to have some public places in which they may smoke after May 1 next year,  following a compromise reached in the legislature. The bill was signed earlier this month by Governor Jennifer Granholm.  Now, organizations such as the International Premium Cigar & Pipe Retailers Association are preparing for the legislature’s anticipated 2010 proposal to increase tobacco taxes.

The state-legislated smoking ban affects most workplaces such as bars and restaurants.  However, home offices, motor vehicles, cigar bars, Detroit casinos and retail tobacco shops that are in business 30 days before the statue takes effect are exempt.

“We appreciate the exemptions of this bill – especially for retail tobacco shops.  Organizations like ours fought the legislation for years because it is anti-business and it deprives Michigan citizens of their constitutional rights.  The only thing worse would be an onerous tax increase on tobacco products.” said Chris McCalla, legislative director of the International Premium Cigar & Pipe Retailers Association.
 
McCalla’s organization of some 2,000 largely mom-and-pop neighborhood cigar stores now is among those groups preparing for an anticipated attempt in 2010 for the legislature to raise taxes on tobacco products.

“Michigan is hurting for money and we are concerned that the legislature next will go after unreasonably higher tobacco taxes.  Our concern is not only for our business and our consumers – tobacco sales will tumble with higher taxes and so will tax revenues – but also for Michigan’s economy.  The anticipated new and current tobacco tax revenues will dry up even moreso when tobacco users turn to non-taxable Internet and catalog sales for their purchases,” McCalla said.

“The retail members of IPCPR represent the premium cigar and pipe tobacco business.  They are not ‘big tobacco.’ Our members are small businesses that employ local people and pay local, state and federal payroll, sales and other taxes. They serve their respective communities with adult products which include premium, hand-made cigars and pipes.  Their customers enjoy our products just as they would a fine wine or specialty beer. And, if higher taxes don’t blow our businesses out of the water, we plan to do so, even after May 1, 2010,” he said.

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