The Kentucky House of Representatives has approved H.B. 32, which would increase the tax on other tobacco products, including cigars, from 15 percent to 25 percent of the wholesale price. It passed by a 75-17 vote.
In the case of a cigar with an MSRP of $9.50, the pre-sales tax cost would increase from $10.93 to $11.88, by halfwheel estimates.
The bill would also tax vaping products at the same rate of 25 percent of the wholesale cost, but it does not affect the tax on cigarettes. Estimates have suggested that should the bill pass, it would raise $50 million in revenue over the next two fiscal years.
H.B. 32 now heads to the Kentucky Senate. If passed and signed into law, the increase would go into effect Aug. 1, 2020.