Earlier this year, Kansas Governor Sam Brownback (R) indicated that as part of his effort to lower state income taxes to zero, he would likely increase consumption taxes on tobacco products on liquor. Now, that proposal has been formally introduced.
Brownback’s 377-page budget for FY2016 recommend an increase in the taxes on tobacco products from 10 percent to 25 percent of the wholesale price of other tobacco products, including cigars. Currently, a cigar with a suggested retail price of $9.50 likely retails for around $10.45, if the taxes were to increase, the new price would likely be around $11.88.
In addition, Brownback’s budget proposal would increase taxes on cigarettes from 79 cents per pack to $2.29 per pack, while liquor taxes would increase from 8 percent to 12 percent.
Brownback estimates that these three tax increases would generate an additional $107.9 million in tax revenue for 2016 and an additional $104.1 million in 2017.
For a complete list of cigar taxes by state, click here.