Press release: Local business groups warn of “significant financial impacts” if city council moves ahead with proposed ban on tobacco and flavored nicotine products

Kansas City, MO – A group of retailers, grocers and oil marketers representing “businesses that support countless jobs and millions in total sales in Kansas City” warned in a letter to the Kansas City (MO) city council of “significant impacts financial” a proposed ban. on flavored tobacco and nicotine products would have on local businesses and the economy.

The City Council will consider the proposal in the Neighborhood Planning and Development Committee today at 1:30 PM CDT, and a vote could come as early as Thursday of this week.

The letter comes after an outpouring of opposition from community leaders and small businesses concerned that the city council’s proposed ban will lead to similar consequences that other cities and states have experienced after passing similar bans.

In the letter, business leaders noted that flavor bans have failed in practice in other cities. “History shows that this policy is destined to fail,” business leaders said, noting that Massachusetts lost “more than $125 million a year in excise taxes” after passing a statewide ban on flavored tobacco and products of nicotine. “We strongly urge city council members not to repeat the mistakes other cities and states have made.”

Business leaders noted that the ban is expected to cost the city up to $6 million in tax revenue and warned that “similar consequences for Kansas City’s economy will be felt if the proposed ban is implemented.”

Despite claims by the city council that the ban would help prevent youth use of nicotine products, recent data from the US Centers for Disease Control and Prevention (CDC) show that youth vaping rates continue to rise. decline, although scented products remain widely available. Furthermore, the use of oral nicotine pouches remains extremely low, at 1.8 percent.

“As a responsible retailer, we care deeply and take seriously our role in preventing young people from buying or purchasing tobacco products. We look forward to working with the city council and other state and local legislators to ensure that products intended for adults remain out of the hands of young people,” said business leaders.

In conclusion, the business leaders called on the city council to reconsider their proposal and avoid the mistakes of other localities: “As representatives of the business community of our city and state, we ask you to save the City of Fountains and the Show State With these entirely predictable consequences, vote no on legislation that would ban the sale of flavored tobacco and nicotine products in Kansas City, MO.”

Signatories of the letter include:

· Dave Overfelt, President, Missouri Retailers Association

· Ray McCarty, President, Associated Industries of Missouri

· Ronald J. Leone, Executive Director, Missouri Petroleum & Convenience Association

· Jon McCormick, President and CEO, Missouri and Kansas Grocers Association

· Dan Shaul, State Executive Director, Missouri Grocers Association

Read the full letter here and below:

Dear Kansas City Council Members:

We collectively represent the businesses that support countless jobs and millions in total sales in Kansas City, and we are writing to express our strong opposition to Executive Order 240897, which would ban the sale of flavored tobacco and nicotine products. Our opposition to this policy is based on the significant financial impacts it would have on the businesses we represent.

History shows that this policy is destined to fail. In 2019, Massachusetts passed a flavored smoking ban that led to a 24 percent decline in sales in the state. Ninety percent of lost sales went to neighboring states, including New Hampshire, where cigarette sales grew by nearly 25 percent in the year immediately following the implementation of the ban. This ill-advised policy cost the Bay State more than 125 million dollars a year in excise revenue.

Similar consequences for Kansas City’s economy will be felt if the proposed ban is implemented. According to the Kansas City Department of Finance, the ban would cost the city between $1 million and $6 million in tax revenue.

In Golden, Colorado, the city council implemented a ban on flavored tobacco and nicotine products and recently had to create a $100,000 relief fund for small businesses that lost sales as a result. The same impacts will be felt in Kansas City if you decide to move forward with this ban.

As a responsible retailer, we care deeply and take seriously our role in preventing young people from buying or purchasing tobacco products. That’s why we’re proud that our strong commitment to law enforcement has helped increase youth smoking rates. all time lows. New data from the US Centers for Disease Control and Prevention (CDC) National Youth Smoking Survey (NYTS) found that youth use of e-cigarettes has fallen to its lowest level in a decade, while youth use of nicotine patches remains at less than two percent.

Our businesses are committed to continuing this trend, and we look forward to working with the city council and other state and local legislators to ensure that products intended for adults stay out of the hands of young people.

The city council’s intentions are laudable, and we certainly share and support your goal to promote public health in Kansas City. But evidence shows that banning scented products has the opposite effect. In one recent study from the Yale School of Public Health, researchers found that banning flavored vaping products may actually lead to increased cigarette use.

We urge city council members not to repeat the mistakes other cities and states have made. A better way forward for Kansas City would be to further strengthen its youth enforcement and prevention policies.

As representatives of the business community of our city and state, we ask that you spare the City of Fountains and the Show Me State from these entirely predictable consequences and vote no on legislation that would ban the sale of flavored tobacco and nicotine products in Kansas City, MO (Ordinance 240897).

Sincerely,

Dave Overfelt, President – Missouri Retailers Association

Ray McCarty, President – Associated Industries of Missouri

Ronald J. Leone, Executive Director – Missouri Petroleum & Convenience Association

Jon McCormick, President and Chief Executive Officer – Missouri and Kansas Retail Grocers Association

Dan Shaul, State Executive Director – Missouri Grocers Association

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