A bill seeking to remove Oregon’s 50-cent per cigar tax cap has been introduced to the state’s legislature, and if it passes, will drastically increase the cost of cigars in the state.
H.B. 2158, which was filed at the request of House Interim Committee on Revenue, seeks to make cigars subject to the full rate of 65 percent of the wholesale price. While a cigar with an MSRP of $9.50 currently costs $10.50 by halfwheel estimates, that same cigar would jump to $15.68 if the tax cap were to be removed.
The increase would take affect 91 days after the legislature adjourns and would to tobacco products tax reporting periods beginning on or after January 1, 2020. It is currently awaiting assignment to a committee for a hearing.