All states tax smokeless tobacco, 43 states set tax rate upon wholesale or manufacturer price (ad valorem), others on unit. US Tobacco has historically had virtually all market, charging a premium price. But competitors have developed - offering the product at economy price. The tax problem for US Tobacco is that an ad valorem tax on premium priced brand creates even greater price gap between premium and economy brands. US Tobacco lobbies state legislatures to switch from ad valorem to weight basis. Low price brands lobby legislatures to maintain ad valorem. Which approach is better and why?