On Thursday, Michigan Gov. Gretchen Whitmer signed HB 4485 into law, a bill that will permanently extend the state’s current 50-cent cap, which in turn will save cigar smokers a decent amount of money.
While Michigan has a tax rate of 32.4 percent of the wholesale price on cigars, the state has had a cap of 50 cents per cigar in place since November 2012. However, the legislation that enacted that cap was set to expire in October, which would have made cigars more expensive. In real-world terms, a cigar with an MSRP of $9.50 that cost $10.50 with the cap in place would have gone up to $12.58 without the cap, by halfwheel estimates and using commonly practiced tax procedures.
HB 4485 was sponsored by Rep. Matt Hall, R-Marshall, and introduced in April; it passed by the House of Representatives in May by an 83-25 vote with two representatives not voting and the Senate by a 28-6 vote in October with two members excused.