Philadelphia has generated $1.6 million from smokeless tobacco tax

smokeless tobacco dip chew
Smokeless “dipping” tobacco. (Credit: Wikipedia)

The city of Philadelphia has generated $1.6 million in smokeless tobacco tax revenue since 2010, according to a monthly economic report released today by City Controller Alan Butkovitz.

Butkovitz found the city’s smokeless tobacco tax revenues for fiscal year 2013 amount to nearly $700,000, exceeding the current budget estimate by $68,000.

Revenues through the first nine months of fiscal year 2013 were the highest collected in one year since the tax was implemented almost three years ago, and there are still three months of revenue collections remaining, Butkovitz noted.

Cigars, smokeless tobacco, pipe tobacco, rolling papers and other loose tobacco are subject to the tax, while cigarettes and cigarillos are excluded.

The tax, on average, amounts to $0.36 for each individually rolled product, like cigars, and $0.36 per ounce for all other tobacco items.

There are about 3,000 tobacco retailers in Philadelphia, according to Butkovitz.



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