While the majority of the cigar industry was wrapping up the 2019 IPCPR Convention & Trade Show in Las Vegas, Nev., Maine Governor Janet Mills was signing a piece of legislation into effect that will more than double the state’s cigar tax while bringing all tobacco taxes into equivalence.
The bill, L.D. 1028, sought to make the tax on all tobacco products the same, meaning that cigarettes would be taxed at the same rate as cigars, pipe tobacco, and electronic cigarettes. For cigar smokers, that means that the tax rate goes from 20 percent of the wholesale price to 43 percent. In practical terms, that means that a cigar with an MSRP of $9.50 goes from $11.40 to $13.59, by halfwheel estimates.