Michigan’s Cigar Tax Cap Extended to 2021

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Cigar smokers in Michigan won’t be seeing an increase in tax on their favorite cigars in the coming years, as Gov. Rick Snyder signed a five-year extension to the cap on cigar taxes yesterday, which will keep things as is through Oct. 31, 2021.

Currently, Michigan residents pay a tax of 50 cents per cigar, though that is the result of a cap passed in 2012 on the state’s rate of 32% of the wholesale price. When that cap was passed, however, it included a sunset date of Oct. 31, 2016.

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The difference at the register can be significant: by halfwheel estimates, a cigar with an MSRP of $9.50 would cost $10.50 with the cap in place, while without the cap that same cigar would jump to $12.54.

The extension to the cap was introduced last fall by Sen. Wayne Schmidt and quickly passed through the Michigan State Senate by a vote of 38-0 on Dec. 10. On March 24, the bill passed the Michigan State House by a vote of 90-18, but not before a new sunset date was added. Schmidt had originally sought to extend the tax cap indefinitely, though a five-year extension was found to be more favorable to state representatives. The version they sent to the senate passed 36-0 with two senators excused.

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Patrick Lagreid
About the author

I strive to capture the essence of a cigar and the people behind them in my work – every cigar you light up is the culmination of the work of countless people and often represents generations of struggle and stories. For me, it’s about so much more than the cigar – it’s about the story behind it, the experience of enjoying the work of artisans and the way that a good cigar can bring people together. In addition to my work with halfwheel, I’m the public address announcer for the Colorado Rockies and Arizona Diamondbacks during spring training, as well as for the Salt River Rafters of the Arizona Fall League, the WNBA's Phoenix Mercury and the Arizona Rattlers of the Indoor Football League. I also work in a number of roles for MLB.com, plus I'm a voice over artist. I previously covered the Phoenix and national cigar scene for Examiner.com, and was an editor for Cigar Snob magazine.

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