The International Premium Cigar and Pipe Retailers Association (IPCPR) has announced that it has successfully defeated a proposed tax hike on cigars and pipes in the state of Louisiana.
Yesterday, the Louisiana State Legislature agreed on a new budget to deal with the state’s budget shortfall, which could have totaled to $1.6 billion. While the tax on cigarettes will go up 50 cents in the state, the tax on cigars and pipe tobacco remains the same.
Louisiana currently taxes cigars at 20 percent of their wholesale price. An additional 5 percent tax on cigars had been proposed along with an additional 17 percent tax on pipe tobacco.
Currently a cigar with a suggested retail price of $9.50 likely retails for around $11.40 in Louisiana, if the additional tax had been approved, that price would have been around $11.88.
For a complete list of state cigar taxes, click here.