California Bill Introduced to Raise Cigar Taxes

In late February, a bill was introduced in the California State Senate that would raise taxes on all tobacco products, including cigars. Introduced by Sen. Kevin de León (D-22), SB-768 would increase taxes on non-cigarette tobacco products, which includes cigars, to 67.41% from its current 30.68% according to a staff analysis by the California State Board of Equalization.

“California Senate Bill 768 will have a devastating impact on the California premium cigar industry,” said Keith K. Park, founder and president of Prometheus. “Many of the brick and mortar retail tobacconists will go out of business and the cigar purchase will simply move to the businesses located outside California.”

Park and others have begun campaigns to fight the bill with many tobacconists emailing their customers about the potential effects of the bill, which has been fast-tracked to becoming law and has already cleared multiple committees. Those opposing the bill are asked to sign this action center, as well as contact their local representative.

Last year, the residents of California narrowly rejected Proposition 29, which would have raised taxes on cigars to 54.89% and the cigarette tax by $1.00 per pack. SB-768 would see a $2.00 per pack increase from its current rate.

Some of Prop. 29’s biggest financial supporters, including the American Cancer Society, American Heart Association and American Lung Association, have publicly come out in favor of the bill.

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.