In its new budget proposal, the Ohio Senate has included an increase in the tax on other tobacco products, including cigars, from 17 percent to 22.5 percent of the wholesale price.
Combined with an increase in the cigarette tax from $1.25 to $1.65 per pack, the move is being seen as a way to offset a proposed decrease in the state’s personal income tax.
In February, Gov. John Kasich proposed an increase to 60% of the wholesale price, which would give Ohio one of the highest OTP taxes in the country. He also proposed a one dollar increase in the cigarette tax, raising it to $2.25 per pack.
Ohio has a June 30 deadline to have its next two-year budget passed.