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Online Program

330252
Impact of Other Tobacco Product (OTP) Tax Structure on Retail OTP Prices: Evidence from Commercial Store Scanner Data


Sunday, November 1, 2015

Jidong Huang, PhD, Institute for Health Research and Policy, University of Illinois at Chicago, Chicago, IL
Frank Chaloupka, PhD, Institute for Health Research and Policy, University of Illinois at Chicago, Chicago, IL
Jamie F. Chriqui, PhD, MHS, Institute for Health Research and Policy and Division of Health Policy & Administration, University of Illinois at Chicago, Chicago, IL
Camille Gourdet, J.D., Health Policy Center, Institute for Health Research and Policy, University of Illinois at Chicago, Chicago, IL
Background: While a large body of literature has demonstrated that increasing cigarette excise taxes lead to increase in cigarette prices, little is known about how excise tax structure (ad valorem vs. specific tax) affects prices of tobacco products, even less is known about how OTP excise tax and OTP tax structure affect OTP retail prices.    

Methods: state level OTP tax structure and tax rates data from 2007 - 2013 were compiled from original legal research and linked with OTP retail prices obtained from commercial store scanner database. Multivariate regression analyses were conducted to examine the impact of OTP tax structure (ad valorem and specific tax ) and OTP excise tax rates on retail prices and price gaps/variations, separately for each OTP category.

Results: preliminary results indicate that OTP excise taxes were associated higher OTP retail prices, and ad valorem tax was associated with higher price variations. The associations between OTP tax and prices differ by product categories.  

Conclusion: changes in OTP tax structure and tax rates have significant impact on OTP retail prices, and their impact vary across different OTP categories. Tobacco tax policies that aim to reduce tobacco use should be comprehensive, taking into account not just cigarette tax but also OTP tax,  and the differential price impact of tax structure and tax rates on other tobacco products.

Learning Areas:

Biostatistics, economics

Learning Objectives:
Describe state level OTP tax structure in the U.S. Assess the impact of OTP tax structure on retail OTP prices. Discuss the policy and public health implications of a comprehensive tobacco tax policy.

Keyword(s): Tobacco Control, Economic Analysis

Presenting author's disclosure statement:

Qualified on the content I am responsible for because: I am a senior research scientist at the Institute for Health Research and Policy, where my work is primarily focused on tobacco. I am the principal investigator or co-investigator on several studies funded by CDC's Office of Smoking and Health, the American Legacy Foundation, and the National Cancer Institute. My current research interests focus on the public health impact of tobacco policy and pro and anti-tobacco marketing.
Any relevant financial relationships? No

I agree to comply with the American Public Health Association Conflict of Interest and Commercial Support Guidelines, and to disclose to the participants any off-label or experimental uses of a commercial product or service discussed in my presentation.

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