New law bans sale of tobacco online
Toolbox
By Dawson Raspuzzi Rutland Herald - Published: July 1, 2008
In an age where almost anything can be purchased with a click of the mouse, there's one thing that, by law, will no longer be available for online purchase beginning today — tobacco.
On the same day the tobacco tax increases 20 cents per pack of cigarettes in Vermont, up to $1.99 per pack, state law has also outlawed the sale of tobacco products over the Internet and other delivery sales as part of Vermont's Act 119.
The law is expected to increase state tax revenue, decrease the number of smokers under the age of 18, increase revenue for Vermont retailers and discourage sales from online vendors that illegally fail to collect and pay state, federal or sales taxes, said Assistant Attorney General Christy Mihaly.
Statewide annual public surveys indicate approximately 5 percent of the state's smokers regularly purchase their cigarettes online, which means the state loses out on thousands of dollars each year, Mihaly said.
"We know kids (under the age of 18) have reported buying cigarettes on the Internet and because you can buy cigarettes on the Internet without having your ID checked it's certainly one of the big concerns the legislature had," Mihaly said.
Cutting back on youth smoking was one of the bill's major appeals.
"Because it's a market we know appeals to kids, we hope that it will assist us in preventing kids in starting to smoke," Mihaly said. "Much of the effort in Vermont has been to encourage kids to not start smoking because once they start and become addicted to tobacco it's very hard to get them to quit."
In order to police the online sale of cigarettes to Vermonters, Mihaly said all Internet tobacco vendors have been notified of the law and the Web sites will be required to include a statement at the top of the Web site warning that it is illegal for Vermont residents to buy their products.
Online investigations will be conducted to ensure sites aren't violating the law, although buyers will not be held accountable.
"The new law does not provide penalties to the Vermont consumer," Mihaly said. "The new law is prohibiting the seller from selling into Vermont."
Mihaly said tobacco Internet sales have increased in recent years, creating a problem since the tobacco offered is often counterfeit or stolen and doesn't meet Vermont's "reduced ignition propensity" standards.
The exclusion of Internet sales puts an end to what is often an inexpensive market. Because the sites don't pay the taxes, they don't make the consumer pay a high tax rate either, Mihaly said.
Research shows higher tobacco prices reduce the number of consumers, especially among young people.
"It's our hope that this will be another piece of Vermont's overall effort to control tobacco and reduce the number of folks in Vermont that smoke," Mihaly said.
37