The war on smokes

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Some business leaders are taking issue with Gov. Jim Doyle's sweeping proposals to implement a statewide smoking ban and increase the cigarette tax.

Doyle has proposed raising the state cigarette tax from 77 cents to $2.02 per pack. He also wants to make it harder for smokers to find places to light up by pushing for a ban on smoking in bars, restaurants, workplaces and all public buildings statewide.

Those ideas don't sit well with some Wisconsin retailers located across the border from neighboring states where cigarette taxes would be lower if Doyle gets his way. Bar owners are also concerned as they think a prohibition on smoking will put a major dent in business.

Proponents of Doyle's plan argue the tax hike will pay for smoking-related health-care costs and that banning smoking in most public places, including bars, will help more people kick the habit and prevent costly and potentially fatal tobacco-related health problems.

But opponents argue that won't help the competitive disadvantage that would face retailers located within an easy driving distance from Illinois, Iowa, Minnesota or Michigan's Upper Peninsula. Cigarette taxes in those states range from 36 cents in Iowa to $2 in Michigan.

"My counterparts in those states say 'Yeah, go for it,' " said Brandon Scholz, head of the Wisconsin Grocers Association, which opposes a cigarette tax increase. "There is border traffic; people do cross the border to save money."

Earlier this year, South Dakota's cigarette tax increased $1 to $1.53 a pack, prompting smokers from that state to cross the border into Iowa for cheaper smokes. And since Minnesota's tax on cigarettes increased in 2005, Hudson, Wis., has seen smokers travel from nearby St. Paul to make their tobacco purchases.

Doyle spokesman Matt Canter said increasing Wisconsin's cigarette tax would put the state in line with national trends. The state's 77-cent cigarette tax ranks 30th nationally, according to the Campaign for Tobacco-Free Kids.

Canter said many of Wisconsin's neighbors are looking to raise the tax; Iowa legislators are looking to increase cigarette taxes $1 per pack.

"This increase is actually on par with what is happening across the country," Canter said.

He added that the potential public health benefits are too great to ignore, with research that shows youth smoking drops when the cost of cigarettes goes up.

Retailers may get some help from Republican lawmakers who control the state Assembly and oppose a tax increase in principle. One possibility is a compromise cigarette tax increase somewhat lower than Doyle initially proposed. Scholz said that might help stall some of the border traffic, but won't eliminate the competition retailers face from tribal-run tobacco outlets and Internet sales.

Many of the state's 13,000 or so bar owners are taking issue with the proposed smoking ban. The Tavern League of Wisconsin argues its members in Appleton and Madison - where smoking is banned outright in bars - have seen a drop in business as a result.

The league has pushed for an exemption from the ban for small, family-owned taverns. Since Doyle first proposed the ban, he has made some comments indicating there might be some wiggle room, but Canter said the governor won't back legislation that eliminates smoking bans already in place in various communities, including Madison.

Currently, 28 Wisconsin municipalities have no-smoking ordinances in effect. That has angered businesses owners located on the boundaries of communities without bans.

The 3,000-member Wisconsin Restaurant Association has thrown its support behind the statewide smoking ban, arguing it's necessary to level the playing field for its members adversely affected by "the current patchwork of local smoking bans."

Nine states and the District of Columbia have passed similar laws to what Doyle has proposed, restricting where people can smoke, according to the American Nonsmokers' Rights Foundation. There appears to be public support here for the idea; a recent survey paid for by groups that support the ban found nearly two-thirds of Wisconsin residents in favor.

And Canter contends Doyle is just leading the state toward the inevitable when it comes to public policy on smoking.

"There's going to be a day where the entire country is smoke free," he said.


Jenny Price is a Madison freelance reporter.

jenny.price@gmail.com

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