A proposed 80 percent tax on premium cigar in Washington D.C. will not happen. The Fiscal Year 2015 Budget Support Act of 2014 originally included raising taxes cigars, pipe tobacco and snus to match the current tax on cigarettes, which is currently 80 percent in the D.C.

The proposed budget would have removed the exemption on cigars retailing for $2 or more, which are currently not subject to an excise tax. The 80 percent tax would have made Washington D.C.’s taxes the second highest in the nation.

According to John Anderson of W. Curtis Draper, the premium cigar exemption is now back in effect, although the 80 percent tax would apply to pipes and snus.

For a list of cigar taxes by state, including Washington D.C., click here.

Avatar photo

Charlie Minato

I am an editor and co-founder of halfwheel.com/Rueda Media, LLC. I previously co-founded and published TheCigarFeed, one of the two predecessors of halfwheel. I have written about the cigar industry for more than a decade, covering everything from product launches to regulation to M&A. In addition, I handle a lot of the behind-the-scenes stuff here at halfwheel. I enjoy playing tennis, watching boxing, falling asleep to the Le Mans 24, wearing sweatshirts year-round and eating gyros. echte liebe.