Delaware Bill Seeks to Double Cigar Tax

A bill to double the tax on cigars, as well as increase the tax on other tobacco products, has been introduced into the Delaware legislature.

H.B. 242, which is sponsored by Rep. Peter C. Schwartzkopf, D-14, seeks to raise the tax on all tobacco products other than vapor products, moist snuff, and cigarettes from 15% of the wholesale price to 30% of the wholesale price.

For a cigar with an MSRP of $9.50, that means the cost at the register would go from $10.93 to $12.35 by halfwheel estimates, and before any additional sales taxes are added.

Additionally, the bill seeks to increase the tax on cigarettes from $1.60 to $2.10 per 20 cigarette pack, impose a tax of five cents per fluid millimeter of vapor product, and increase the tax on moist snuff from 54 cents per ounce to 92 cents per ounce.

The bill also increases the fees charged for retail tobacco product licenses from $5 to $50, and tobacco product vending machine licenses from $3 to $15.

The bill has been referred to the House Revenue & Finance committee, where it is scheduled for a hearing within the next 12 legislative days.