Connecticut Budget Effectively Leaves Cigar Tax Unchanged

Null

Connecticut has finally agreed to a new state budget and while it changes some language regarding how cigars are taxed, the result is likely most cigars will continue to pay a 50 cents per cigar tax.

The new budget does leave in place Connecticut’s cigar tax cap, which is the most important thing for consumers. Cigars will be taxed at 50 percent of their wholesale price, capped at no more than 50 cents per cigar.

Null

However, it does include interesting language that could lower the tax rate:

Any tax imposed under this chapter shall be reduced by fifty percent for any product the Secretary of the United States Department of Health and Human Services determines to be a modified risk tobacco product pursuant to 21 USC 387k, as amended from time to time.

While the law could lower a tobacco products tax rate, it seems almost certain it won’t be a cigar. So far, there have been less than 40 products that applied for modified risk status from the U.S. Food & Drug Administration (FDA). None have been approved, though one is still being evaluated.

Even if a cigar were to find a way to qualify for the designation, it probably wouldn’t be priced in a manner where the tax was adjusted. It wouldn’t affect any cigar with an MSRP greater than $4.

There is a much greater chance that this could affect an e-cigarette-type product at some point in the future.

0 Overall Score

Null
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.

Related Posts

Null