In an attempt to find $1.9 billion in new revenues, Massachusetts will soon be considering increases on tobacco taxes, including a jump on the taxes levied on premium cigars.
House Speaker Robert DeLeo and Senate President Therese Murray are proposing an across-the-board increase on tobacco products sold in the state. On cigars and smoking tobacco, the tax rate would go from 30% of the wholesale price to 40%. Cigarettes and little cigars would see a $1 increase as the tax levied on them goes from $2.51 per pack to $3.51. Moist snuff would see the biggest increase, going from 90% to 210% of the wholesale price.
The tax increases are projected to bring in $165 million to the state’s coffers.
The International Premium Cigar and Pipe Retailers Association (IPCPR), working in conjunction with the Cigar Association of America (CAA), has launched an action alert and is asking retailers and consumers in the state to contact their elected officials in opposition to this proposal.