A bill introduced into the Connecticut General Assembly could have cigars costing more this summer, as the governor is calling for a $1 increase on the current tax cap amongst a number of other increases that are part of his proposed budget.
Currently, premium cigars and other tobacco products are taxed at a rate of 50 percent of the wholesale price, though it is capped at 50 cents per cigar. Should S.B. 787 pass, that cap would increase to $1.50, which means that a cigar with a suggested retail price of $9.50 would jump from $10.50 at the register to $12.50, by halfwheel estimates and before sales taxes are added.
Via the bill, Gov. Dannel “Dan” Malloy is also seeking an increase in the state’s cigarette tax, from $1.95 to $2.17 per pack, as well as an increase on the snuff tax, from $1 to $3 per ounce.
Should it be passed, the increase would go into effect on July 1, 2017. The bill has been referred to Joint Committee on Finance, Revenue and Bonding, with no date for a hearing set as of yet.
The Connecticut General Assembly is also considering an increase to the minimum age to purchase tobacco products, as H.B. 5384. Earlier this week, that bill passed a voice vote in the Joint Committee on Public Health.