Kentucky Tobacco Tax Increase Proposal Clears House Committee
The Kentucky House Budget Committee has passed a bill that would nearly double the state’s taxes on cigars.
H.B. 32 would increase the tax on other tobacco products, including cigars, from 15 percent to 27.5 percent of the wholesale price.
A cigar with an MSRP of $9.50 likely costs about $10.93 in Kentucky before sales tax. If H.B. 32 were to pass, that same cigar would likely retail for $12.10.
The bill will also tax vaping products at the same 27.5 percent of the wholesale cost.
If passed, the bill would go into effect Aug. 1, 2020.
H.B. 32 now moves to a vote in the full Kentucky House of Representatives.
Charlie Minato
I am an editor and co-founder of halfwheel.com/Rueda Media, LLC. I previously co-founded and published TheCigarFeed, one of the two predecessors of halfwheel. I have written about the cigar industry for more than a decade, covering everything from product launches to regulation to M&A. In addition, I handle a lot of the behind-the-scenes stuff here at halfwheel. I enjoy playing tennis, watching boxing, falling asleep to the Le Mans 24, wearing sweatshirts year-round and eating gyros. echte liebe.
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