A bill in the Virginia House of Delegates could change the way premium cigars are taxed in the state. Rep. Hyland “Buddy” Fowler, R-Richmond, has introduced H.B. 1277, which would abandon the 10 percent wholesale tax currently imposed on premium cigars in favor of a new tax that would be at 6.25 percent of the price charged to the end consumer.
The change would almost certainly reduce prices, although it a rather minimal level. Using the most rudimentary of typical cigar store margins, a cigar carrying an msrp of $10 would be reduced by less than 40 cents.