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Rex Jones: Update Alabama’s tax code to accommodate new smoke-free alternatives



Free markets will always innovate faster than governments. We see this in almost every sector of the economy, where new products emerge that defy old classifications. One sector that is innovating faster than policymakers can keep up is the tobacco industry. New products are coming to the market that offer adult smokers a better alternative.

Retailers are constantly striving to satisfy consumer demand with new and diverse options, especially when it comes to tobacco and nicotine products. In gas stations and convenience stores, these products can account for roughly one-third of store sales, so store owners are paying close attention to a category that has undergone unprecedented change in recent years.

today, 20 percent Ten percent of Alabama adults still smoke cigarettes regularly, and many are looking for less harmful alternatives. To meet this growing demand, new smokeless, heated tobacco products are being introduced that the U.S. Food and Drug Administration (FDA) has determined are “appropriate for the protection of the public health.”

Although nicotine is highly addictive, it is not the substance that causes cancer, emphysema, or other deadly diseases caused by smoking. The greatest threat to a smoker's health is the toxic smoke that is inhaled into the lungs. Smokers now have access to a number of innovative smoke-free products, such as heated tobacco products, which are a much better option.

Switching from tobacco to these alternatives is not only beneficial for many customers, but also helps promote public health more broadly.

Our members are responsible retailers of age-restricted products and care about their customers. Store owners and employees comply with laws that prohibit selling or advertising tobacco and nicotine products to anyone under the age of 21. As a result of these efforts, youth tobacco use rates are at an all-time low. Now is the time to focus on creating changes and policies that work for the better for adult smokers.

New legislation in the Alabama Legislature seeks to align the state's tax laws with the market, common sense and public health. House Bill 438 updates definitions in Alabama's tax code and creates a new category of smokeless heated tobacco products. These changes will make smokeless products more accessible to adult smokers and ensure these products are more affordable than cigarettes.

We know that tax rates affect consumer behavior. Independent researchers have found Adult smokers are less likely to smoke if taxes on combustible cigarettes are increased, but if taxes on e-cigarettes are increased, increase Adult traditional tobacco use is the opposite of what Alabamians want as a public health outcome.

We applaud the introduction of this bill and urge Alabama lawmakers to amend the tax code to properly classify options that will help provide new smokeless alternatives to adult smokers.

Rex Jones is Alabama Petroleum and Convenience Marketers Association

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