As part of the state’s new budget that was approved early Monday morning, the tax on cigars will be doubling from 15 percent of the wholesale price to 30 percent on Sept. 1.
The increase was proposed in mid-June by Rep. Peter C. Schwartzkopf, D-14, and got passage from both chambers of the legislature on Sunday evening.
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 tax on cigarettes increase from $1.60 to $2.10 per 20 cigarette pack; there will be a new tax of five cents per fluid millimeter of vapor product, and the tax on moist snuff increases from 54 cents per ounce to 92 cents per ounce. The vapor product tax will go into effect on Jan. 1, 2018, while the other increase go into effect on Sept. 1.