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.