Virginia Governor Calls for Tobacco Tax Increase

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Virginia Gov. Ralph Northam unveiled his 2020-2022 budget proposal today, which included a doubling of the state’s tobacco tax rate from 10 percent to 20 percent of the wholesale price.

In the case of a cigar with an MSRP of $9.50, that would mean an increase in price from $10.45 to $11.40 by halfwheel estimates, and before any additional sales taxes were added.

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Northam is also proposing that the state’s cigarette tax be doubled from 60 cents per pack to $1.20. Currently, Virginia has the second lowest cigarette tax rate in the country behind only Missouri, which taxes cigarettes at 17 cents per pack.

The funds generated from the increases in the tobacco tax rates would be used to reduce insurance marketplace premiums by 20 percent, as the governor is calling for a state reinsurance program that will help keep premiums stable and helps insurers cover high-need individuals.

The budget now goes to the General Assembly for debate.

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About the author

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.

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