Taxation Premium Cigars

Effective July 1, 2024, the bill defines "premium cigars" and reduces the statutory rate of taxation of this particular tobacco product from the current rates for all non-cigarette tobacco products other than moist snuff of 36% of the manufacturer's list price (MLP) from July 1, 2024, through June 30, 2027, and 42% of the MLP on and after July 1, 2027, to 20% of the MLP, effectively rolling back the increases in the statutory taxation rate for such tobacco products since 2005. The bill does not affect taxation of premium cigars under section 21 of article X of the state constitution, which imposes an additional 20% tax.(Note: This summary applies to this bill as introduced.)