City Council Minutes 2020 05 19 - Laserfiche WebLink

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City Council Meeting Minutes May 19, 2020 Page 4 of 14 Tobacco/Vaping Deputy City Manager Davis stated that as of July 1, 2019, the State has removed penalties previously imposed on local governments for licensing tobacco retailers, particularly cigarette retailers. The change also permits local municipalities (statutory and home -rule) to impose fees and licenses on cigarette sales without forfeiting their share of the State Cigarette Tax. The bill authorizes a county or city to adopt its own special sales tax upon all sales of cigarettes, tobacco products, or nicotine products, provided any such proposal is referred to and approved by the voters in such municipality. If the local electorate approves a special tax, the municipality would forfeit its share of the State Cigarette Tax. If the City were to impose a special tax on cigarettes, tobacco products and nicotine products, additional sales tax revenue could be generated. In December, 2019 the City Council imposed a local ordinance prohibiting the sale of tobacco, e-cigarettes, vaporizers and similar products to persons under the age of twenty- one. Some other counties and municipalities have moved forward with a tax. Most are charging up to $4 tax on a pack of cigarettes and 40% tax on other tobacco products. If the Council is interested in moving forward with this issue on the ballot staff would need details on the level of taxation, any product exemptions, if you want a sales or excise tax, and what to do with the revenue. Mayor Pro Tern Maloney asked what the definition of "Other Tobacco Products" includes. Deputy City Manager Davis stated it includes cigars, vape devices, pipe tobacco, etc. Councilmember Dickinson stated he strongly supports this be put on the ballot. We have a serious vaping problem in the community and he feels this will have a lot of support. He would like to curb youth vaping, not the adult cigar and pipe users. He stated he would support an exemption for cigar shops. He stated reducing youth cigarette use and vaping is the goal. Councilmember Fahey stated she supports the measure to address tobacco use by youth specifically, but she does not necessarily want to address general tobacco products. Councilmember Leh agreed with Councilmember Dickinson's comments. This tax should target youth vaping and cigarettes. Councilmember Brown disagreed stating he didn't support a carve out for cigars. He noted many cigars are designed to be attractive to youth. He stated that around the country these carve outs often specifically allow for specialized cigars targeted at youth.