Politics
8:46 am
Tue February 18, 2014

Mo. price breaks persist for Little Tobacco

Credit Sudipto_Sarkar / flickr

The state of Missouri faces the loss of nearly $70 million this year in tobacco settlement payments due to a unique pricing advantage enjoyed by some cigarette companies.

The St. Louis Post-Dispatch reports that Missouri is the only state which signed a landmark settlement agreement more than 15 years ago to not eliminate a loophole allowing small cigarette manufacturers and retailers to avoid making escrow payments. The payments are required of companies that didn't sign the settlement.

State lawmakers have refused requests by two Missouri attorney generals over the past 12 years to neutralize the pricing advantage. And a federal arbitration panel found that Gov. Jay Nixon neglected to file lawsuits against the smaller tobacco companies to force them to pay into the escrow fund when he was attorney general.

Missouri could also lose tens of millions in tobacco money each year for at least seven years.