Dear Legislator:
Onbehalf of the National Taxpayers Union’s (NTU’s) nearly 4,700 members inOklahoma, I urge you to reject HB 2135, which would eliminate the state’spreemption on local authority to regulate tobacco. Although proponents claimthis legislation will enable municipal governments to promote economicdevelopment through healthy workforce initiatives, in reality HB 2135 includeslanguage that could lead to burdensome regulations and another round of fees ontobacco. This in turn would actually harmeconomic development due to higher costs on the poor and on small retailers inthe Sooner State.
Low-incomeOklahomans are more likely to smoke, so they will disproportionately feel the impactof any additional fees on tobacco products. A 2007 study by the HeritageFoundation showed that more than one-fourth of people who smoke live below thefederal poverty line and another quarter of all smokers live within 100-200percent of the poverty line. High fees on tobacco products would be asubstantial additional expense for these citizens, especially considering thatOklahomans already pay the nation’s 19th-highest state and local taxburden as a percentage of income – a heavier load than citizens bear in theneighboring states of Colorado, Kansas, Missouri, New Mexico, and Texas.
Salesof cigarettes and other tobacco products also comprise a substantial portion ofbusiness for small retailers. The National Association of Convenience Storesreports that cigarettes account for about one out of every three dollars oftotal sales nationwide at their establishments. Iflocal governments increase the amount of fees on tobacco products, Oklahoma’sretailers in towns such as Blackwell, Sallisaw, and Marietta could losebusiness to competitors in Kansas, Arkansas, and Texas who do not levy suchfees. Ironically, this will deprive the state, as well as local governments, ofrevenues.
Economicdevelopment is of course a worthy goal for Oklahoma, and NTU generally supportslaws allowing municipalities the flexibility to innovate with competitivefiscal policies. However, laws that expand public officials’ authority to raiseprices and impose onerous regulations will not create more jobs or enhance theprosperity of citizens. Therefore,our members hope that you will stand for real economic development by opposingHB 2135.
Sincerely,
John Stephenson
State Government Affairs Manager
Cc: GovernorMary Fallin