HARRISBURG - Pennsylvania Attorney General Kathleen G. Kane on Thursday asked a Philadelphia court to overturn a ruling that stripped the state of nearly $170 million in tobacco settlement payments.
In a motion filed in Common Pleas Court, Kane argued that an arbitration panel's ruling last month that penalized the state for failing to "diligently enforce" laws requiring the collection of taxes and other payments from tobacco companies was unfair.
"The arbitration panel's decision penalizes Pennsylvania for factors the panel clearly allowed for other states," Kane said in a statement.
For instance, she said, Pennsylvania had an identical tax-collection rate to Ohio, which the panel found was diligent. The panel also penalized the commonwealth for not taxing roll-your-own tobacco, while at the same time finding that Oregon had no obligation to do so.