Legislation 0

Rhode Island Governor Proposes Cigar Tax Increase

By @phxcigarguy · On January 18, 2018
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In addition to a slew of new legislation being proposed across the country, budgets for the upcoming fiscal year are starting to emerge, and in Rhode Island, Gov. Gina Raimondo is calling for a 30-cent per cigar increase to the state’s current rate.

The governor released her proposal on Thursday, and tobacco taxes were part of the key points. Currently, Rhode Island has a tax rate on cigars of 80 percent of the wholesale price, but it is capped at 50 cents per cigar. Raimondo would like to raise that cap to 80 cents, according to a report from ProvidenceJournal.com. The budget has not yet been posted online.

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For a cigar with an MSRP of $9.50, the cost at the register would go from $10.50 to $11.10 by halfwheel estimates.

The governor is also calling for a 25-cent per pack increase in the cigarette tax that would raise it to $4.50. A new tax would also be applied to e-cigarettes and other alternative nicotine delivery products. The tax has been estimated to bring in an additional $6.2 million in revenue, which would be used to help close a projected $204.1 million deficit next fiscal year.

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Patrick Lagreid

I strive to capture the essence of a cigar and the people behind them in my work – every cigar you light up is the culmination of the work of countless people and often represents generations of struggle and stories. For me, it’s about so much more than the cigar – it’s about the story behind it, the experience of enjoying the work of artisans and the way that a good cigar can bring people together. In addition to my work with halfwheel, I’m the public address announcer for the Colorado Rockies and Arizona Diamondbacks during spring training, as well as for the Salt River Rafters of the Arizona Fall League, the WNBA's Phoenix Mercury and the Arizona Rattlers of the Indoor Football League. I also work in a number of roles for MLB.com, plus I'm a voice over artist. I previously covered the Phoenix and national cigar scene for Examiner.com, and was an editor for Cigar Snob magazine.