Economic Impact

Source from:  www.washingtonpost.com 02/09/2009

Philip Morris USA, which is headquartered in Richmond, is a major source of revenue and jobs in Virginia. Virginia received: $170.3 million in state excise taxes on tobacco last year. $132.7 million in revenue from tobacco companies participating in the Tobacco Settlement Agreement last year. $91.9 million in sales tax revenue on cigarettes last year. In addition: The state received $1.05 billion from participating tobacco companies as a result of the landmark Tobacco Settlement Agreement as of 2007. Cigarette-related revenue amounted to 2.1 percent of Virginia's total tax revenue last year. Philip Morris USA contributed more than $632 million to Virginia's economy through employee wages and paid $33.8 million in payroll taxes, $16 million in property taxes and $37.3 million in franchise and state corporate taxes in 2007. Philip Morris purchases 18 million pounds of tobacco raised in the state by more than 500 growers. In addition to buying tobacco, Philip Morris conducts business with more than 1,000 suppliers, purchasing more than $840 million worth of services. Philip Morris paid more than $10 million in tobacco freight costs to Virginia carriers and $40 million to warehousing and distribution companies. On Jan. 29, Philip Morris USA reported a $5 billion operating profit on $18.8 billion in revenue last year despite a 4 percent slide domestic sales. Enditem