Rhode Island’s governor is looking to make cigars a bit more expensive in her recently released FY 2020 budget proposal.
Like she did in 2018, Gov. Gina Raimondo is looking to raise the tax cap on premium cigars from 50 cents to 80 cents per cigar. In the case of of a cigar with an MSRP of $9.50, that would boost the cost at the register from $10.50 to $11.10 by halfwheel estimates.
Cigars are the only thing to be selected for a tax increase; the governor is once again calling for a 25-cent per pack increase in the cigarette tax that would raise it to $4.50. Additionally, the state’s tax rate of 40 percent of the wholesale price would be applied to electronic nicotine delivery systems such as e-cigarettes or vaping devices. According to an executive summary of the budget, the changes are expected to generate revenues of $4.6 million.