Tobacco Companies May Withhold $600 Million From States: Study

Source from:  Wed Apr 9, NEW YORK (Reuters) news.yahoo.com 04/10/2008

U.S. tobacco companies might withhold around $600 million of annual payments they agreed to pay states to help cover medical bills for ailing smokers, according to a new report. Many U.S. states, counties and cities securitized these payments, but smoking rates have fallen, partly due to higher taxes. "The tobacco companies are challenging their payments for the third year in a row under the Non-Participating Manufacturer's (NPM) adjustment clause of the settlement, this time based on calendar year 2005," said the report by Herbert J. Sims & Co, which is based in Iselin, New Jersey. Enditem