The 50 cent tax cap on cigars in the state of Michigan is currently set to expire in late 2021, though that’s likely to change shortly.

Both the Michigan House and Senate have passed a bill that would extend the tax cap indefinitely. Now all it needs is a signature from Gov. Rick Snyder, which is expected. In 2016 Snyder signed into law a change that extended the tax cap from October 2016 to October 2021.

The new bill— S.B. 304—simply removes the October 2021 language, which extends the cap indefinitely.

Michigan has a 32 percent wholesale tax on other tobacco products. A $9.50 MSRP cigar likely costs around $10.50 with the cap, it would cost $12.54 without the cap per halfwheel’s estimate.

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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.