While Nebraska doesn’t have a truly oppressive tobacco tax, one state legislator is looking to drive down the cost of cigars in the state by instituting a cap on just how much tax can be charged on a cigar.
Sen. Justin Wayne, D-13, is sponsoring L.B. 429, a bill that would place a 50-cent cap on the state’s cigar tax, which is 20 percent of the wholesale price. That means that a cigar with an MSRP of $9.50 that currently sells for $11.40 by halfwheel estimates, would drop to $10.50, should L.B. 429 pass.
The bill is currently awaiting assignment to a committee. If enacted into law, the cap would go into effect on Oct. 1.
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