Flat Cigar Tax Proposed in Hawaii Legislature

A pair of companion bills have been introduced in the Hawaii state legislature that would provide a good bit of tax relief for cigar smokers through a change in the tobacco tax structure.

HB 1849 and SB 2971 would change the current cigar tax in the state from 50% percent of the wholesale price to the lesser of 50 cents per cigar or 50% of the wholesale price. The change would mean that nearly every premium handmade cigar would be taxed at 50 cents per unit, saving consumers a significant amount of money and directing more money toward in-state retailers.

There was a push to make this change during the 2013 session of the Hawaii legislature with SB 188, but the bill was deferred by the House  Health and Economic & Business Development Committees and was carried over to this session. In addition to the tax change, SB188 seeks to change language in the Hawaii Revised Statutes to create a specific definition for premium cigars to keep them from getting lumped together with other tobacco products, which have recently come under intense fire in the state.

The Hawaii Cigar Association has been working with members of both houses to create positive change and relief for cigar smokers through these bills, primarily through cleaning up the language and semantics of existing state statutes and carving out a unique space for premium cigars and the retailers who sell them.

If passed, the tax change would go into effect on July 1, 2014.

Patrick Lagreid

I strive to capture the essence of a cigar and the people behind them in my work – every cigar you light up is the culmination of the work of countless people and often represents generations of struggle and stories. For me, it’s about so much more than the cigar – it’s about the story behind it, the experience of enjoying the work of artisans and the way that a good cigar can bring people together. In addition to my work with halfwheel, I’m the public address announcer for the Colorado Rockies and Arizona Diamondbacks during spring training, as well as for the Salt River Rafters of the Arizona Fall League, the WNBA's Phoenix Mercury and previously the Arizona Rattlers of the Indoor Football League. I also work in a number of roles for Major League Baseball, plus I'm a voice over artist. Prior to joining halfwheel, I covered the Phoenix and national cigar scene for Examiner.com, and was an editor for Cigar Snob magazine.