Massachusetts Legislator Proposes Cigar Tax Cap

Massachusetts’ reputation as a tax-heavy state could get a bit of a reprieve if a recently introduced bill to cap the tax on premium cigars finds favor in the state legislature.

State Sen. Michael O. Moore, D-Second Worcester, has introduced S.D.171, which seeks to modify the current taxation rates of electronic smoking devices, cigars and smoking tobacco. In the case of premium cigars, Moore’s bill would place a cap of 50 cents per cigar on the state’s tax rate of 40% of the wholesale price.

In practical terms, the change would mean that a cigar with an MSRP of $9.50 would go from costing $13.30 to $10.50 by halfwheel estimates and before local taxes.

Moore’s bill also seeks to place electronic smoking liquid under the state’s current tax structure, meaning it would be subject to being taxed at 40% of the wholesale price.

The bill has already gained the co-sponsorship of State Sen. Michael J. Rodrigues, D-First Bristol and Plymouth.

The item has not yet been scheduled for any legislative action.