Competing Bills Seek to Change Tobacco Tax in Georgia (Update)

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On Friday, new legislation was introduced in the Georgia House of Representatives that could increase the taxes on cigarettes and other tobacco products, including some cigars. Another bill, which would actually lower the tax on cigars on Georgia, has passed the House and is now moving through the Senate.

Five legislators, four Democrats and one Republican, introduced H.B. 1229, which would increase taxes on tobacco products. That would include increasing the tax rates on cigars from the current rate of 29 percent of the wholesale price to 39 percent of the wholesale price.

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Per halfwheel estimates, a cigar with an MSRP of $9.50 likely retails for around $11.67 before sales tax, a price that would increase to $13.21 if H.B. 1229 was enacted.

A separate bill, H.B. 882 would actually lower the tax on cigars to 12 percent of the wholesale price, meaning that same $9.50 cigar could be $10.64 if H.B. 882 is enacted. That bill has passed the House and is currently under consideration in the Georgia Senate.

Both bills would increase the state tax on cigarettes, which is currently 35 cents per pack. H.B. 1229 would increase the tax on cigarettes to $1.87 while H.B. 882 would increase it to $1.35.

Update (June 23, 2020) — As noted in the comments, there is no tax cap in H.B. 1229, that is likely a reference to the cigarette tax.

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Charlie Minato
About the author

I am an editor and co-founder of halfwheel.com/Rueda Media, LLC. I previously co-founded and published TheCigarFeed, one of the two predecessors of halfwheel. I handle the editing of our written content, the majority of the technical aspects of the site and work with the rest of our staff on content management, business development and more. I’ve lived in most corners of the country and now entering my second stint in Dallas, Texas. I enjoy boxing, headphones, the Le Mans 24-hour, wearing sweatshirts year-round and gyros. echte liebe.

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