Anyone who has ever sat through the open microphone session at the annual meeting of the Retail Tobacco Dealers of America can tell you that year after year, retailers seem bitterly disappointed that the industry's sole trade association can't tackle each and every legislative and tax initiative that roles down the pike.

The RTDA, in conjunction with the Cigar Association of American (CAA), does lobby for the industry's interests in numerous big-ticket legislative proposals, predominately at the Federal level. Sometimes they even target certain state initiatives, particularly ones with national ramifications. But the resources necessary to actively fight potential tax hikes in all 50 states - often involving multiple bills from legislators within each state - is simply beyond the scope of either organization.

The message: It's up to you, the retailers in each state, to monitor and react to proposed legislation within your particular state. Does that sound daunting? Apparently to many, it does, because there seems so little interest around the nation for retailers to step up to the task. For the few that do, the results are often nothing short of amazing.

Last year, Jan Esler-Rower, owner of Cascade Cigar and Tobacco, Portland, Oregon, successfully led an effort in rolling back the state's 65% wholesale OTP tax that was choking tobacconists' sales and driving business out of state (Smokeshop October/November 2001, pg. 64). The fight lasted years, and attracted little help from other retailers in the state.

With the new year barely under way, Ruth Weiss, owner of Greentree Tobacco Co. in Turnersville, N.J., has accomplished a similar task in her home state, which instituted a 48% wholesale tobacco tax in 1998. Last November, Weiss met with State Senator John Matheussen (R), and explained the burden the tax imposed on tobacco retailers. She produced out-of-State catalogues that bombard New Jersey consumers with prices lower than in-state costs with tax. She demonstrated the loss of business and revenue to the state. Matheussen promised to support legislation to change the tobacco tax.

Weiss then gained the support of State Assemblyman Robert Smith (D). Bills reducing the tobacco tax to 30% passed both houses of the Legislature and were signed into law on January 11 by Acting Governor John Bennett. "The successful effort is an example of how tobacco retailers armed with facts and reason can motivate legislators of both parties to correct poor laws," said Ruth's husband and business partner, Burton Weiss.

Yes, these efforts required work and patience, but Weiss and Esler-Rower are vivid examples that even anti-tobacco government entities will respond to the needs of small business constituents and fiscal logic. These retailers embraced the daunting task of reversing already-enacted tax hikes, without the support of a larger organization. But imagine how much easier and effective such efforts could be if retailers banded together in their state to argue their case. When combined with careful monitoring of bills introduced at local state houses, such efforts could even head off increases before they ever pass.

Late last year, President Bush extended the tax moratorium on Internet and mail-order sales for another two years, ending speculation among traditional retailers that the retail playing field will be leveled any time soon, if ever. Internet and mail order will continue to hurt already suffering smoke shops in high tax states. And waiting for someone else to save your business may prove fatal: the white knight just may be you.

E. Edward "Ted" Hoyt III
Editor