| Food Marketing Institute, 655 15th Street, N.W., Washington, DC 20005 TELEPHONE (202) 452-8444 FAX (202) 429-4519 |
| Food Marketing Institute, 655 15th Street, N.W., Washington, DC 20005 TELEPHONE (202) 452-8444 FAX (202) 429-4519 |
FDA To Post Illegal Tobacco Sales to Minors
The Food and Drug Administration (FDA) will begin posting on its Web site the names and addresses of retail stores that have been found selling cigarettes to minors. FDA's site may be accessed at http: //www.fda.gov. Meanwhile, the United States Supreme Court will hear oral arguments in December on a ruling by the U.S. Court of Appeals for the 4th Circuit that FDA lacks jurisdiction to regulate tobacco products. The High Court is expected to render a decision in the Spring of 2000.Floor Stocks Tax on Cigarettes Effective January 1, 2000
An increase in the federal excise tax as part of the Balanced Budget Act of 1997, imposed a floor stocks tax on cigarettes effective January 1, 2000. If you sell cigarettes, you must document (either by record or physical inventory) all tax paid or tax-determined cigarettes held for sale on January 2000. The tax is the difference between the previous excise tax rate and the new tax rate. The new tax rate for small (Class A) cigarettes is $17.00 per thousand, which is an increase of $5.00. The floor stocks tax is $5.00 per thousand, or 10 cents for a pack of 20 cigarettes. You may be required to file a floor stocks tax return by March 31, 2000. There is a credit for the first $500 of the floor stocks tax, so those with zero tax liability after subtracting the $500 credit do not have to file a tax return. The tax is paid on Form 5000.28T (2000 Floor Stocks Tax Return) to the Bureau of Alcohol, Tobacco and Firearms. Contacts: National Revenue Center at 1-800-398-2282 or 513-684-7151 or via the internet at atf.treas.gov/core/tobacco/package.pdf atf.treas.gov/core/tobacco/cigflstax.htm.Northeast Dairy Compact Extended
House and Senate leaders agreed to a dairy settlement that would extend the Northeast Dairy Compact through September 2001. It would also implement Option 1-A, instead of market order price reform by USDA rulemaking, and create a five year pilot program for forward contracting on all classes of milk, except Class I milk.As we go to press, Senators Herb Kohl (D-WI) and Rod Grams (R-MN) are threatening to hold up passage of anything on the Senate floor unless the dairy agreement is withdrawn. The White House has also signaled its opposition to the dairy agreement.
ISSUEGRAM
House Approves Omnibus Bill, Senate Soon to Follow
After weeks of negotiations, the House finally approved a $385 billion omnibus spending and policy bill (H.R. 3194), along with a tax extenders package. As we go to press, Senate approval is mired in a procedural battle as four Midwestern senators, led by Herb Kohl (D-WI), try to reverse an agreement reached on dairy last week. (See page one.)
Following is an update on FMI's top issues. See also Monday's FMI In Washington for a final update on Senate activity and a possible vote on EBT legislation.
Estate Taxes/Minimum Wage
In the House, nearly $16 billion in estate tax rate relief was included in the bipartisan minimum wage bill offered by Reps. Rick Lazio (R-NY) and John Shimkus (R-IL), that would have increased the minimum wage by $1.00 over three years, while providing nearly $35 billion in tax breaks to offset the increase. The legislation did not see floor activity, and it is unclear whether congressional leaders will attempt to offer the bipartisan bill for consideration when lawmakers return in January or begin again on the issue.In the Senate, minimum wage legislation was tied to the Bankruptcy Reform Act, which was pulled from the floor last week. The Senate had approved the Republican package that would have raised the wage $1.00 over three years, while providing about $18.4 billion in tax relief. In order to get the Republican measure approved, Senate leaders pulled the estate tax provisions from the bill.
FMI and its coalition, Americans Against Unfair Family Taxation (AAUFT), have been engaged in efforts to keep estate tax repeal "front and center" as a tax issue. In addition, FMI is developing 40 personal "profiles" of the owners of supermarket companies that are family held, in an effort to make the community connection with decision makers and editorial boards at the federal and state and local levels as to the onerous effect of the estate tax.
Tax Extenders
The House approved legislation (H.R. 1180) late Thursday that would extend the Work Opportunities Tax Credit and the Welfare-to-Work credit for two and a half years through December 31, 2001. The Ticket to Work and Work Incentives Improvement Act of 1999, would also extend the tax exclusion for employer-provided educational experience for undergraduate level courses through December 31, 2001. As we go to press, the Senate is expected to approve the measure over the weekend.Ergonomics
A provision to prohibit the Occupational Safety and Health Administration (OSHA) from promulgating an ergonomics regulation during FY 2000 was not included in the omnibus package approved by the House last week. OSHA is expected to publish its regulations as soon as the Office of Management and Budget completes its review. Senate Majority Leader Trent Lott (R-MS) had vowed that the proposal would be approved this fall, and may try to push it early next year. FMI will continue to oppose promulgation of the regulations until completion of the study.
November 22, 1999
Copyright © 1999 by Food Marketing Institute
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