Premium cigars sold in Indiana could be getting a bit cheaper, as a bill that includes a $0.72 tax cap passed the state Senate by a 37-12 vote on Tuesday.

According to its sponsor, Sen. Travis Holdman, R-Markle, SB 382 seeks to bring parity to the various tobacco and nicotine product tax rates in the state. In particular, it seeks to address the fairly new taxes on the various types of e-cigarettes and e-liquids, which was put into place during the 2021 legislative session.

But while premium cigars aren’t a key part of the bill’s focus, they could still benefit if the bill passes. Currently, Indiana imposes a tax rate of 24 percent of the wholesale price on all cigars, which in the case of a cigar with an MSRP of $9.50 means it costs $11.78 by halfwheel estimates.

SB 382 calls for that rate to be capped at $0.72 for all cigars with a wholesale price of $3 or more. That same cigar with an MSRP of $9.50 would decrease in price to $10.94, again by halfwheel estimates. Cigars with a wholesale price under $3 would still be taxed at the 24 percent rate.

The bill now heads to the Indiana House of Representatives for consideration. If passed and signed into law, the cap would become effective on Jan. 1, 2023.

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Patrick Lagreid

I strive to capture the essence of a cigar and the people behind them in my work – every cigar you light up is the culmination of the work of countless people and often represents generations of struggle and stories. For me, it’s about so much more than the cigar – it’s about the story behind it, the experience of enjoying the work of artisans and the way that a good cigar can bring people together. In addition to my work with halfwheel, I’m the public address announcer for the Colorado Rockies and Arizona Diamondbacks during spring training, as well as for the Salt River Rafters of the Arizona Fall League, the WNBA's Phoenix Mercury and previously the Arizona Rattlers of the Indoor Football League. I also work in a number of roles for Major League Baseball, plus I'm a voice over artist. Prior to joining halfwheel, I covered the Phoenix and national cigar scene for, and was an editor for Cigar Snob magazine.