As I recently posted, coming to a state near you soon:
Bill Seeks to Triple New Jersey’s Cigar Tax
Cigar smokers in New Jersey could be facing a significant price hike at the register, as a bill introduced in both houses of the state legislature is seeking to triple the Garden State’s tobacco tax. A1815 and S284 seek to increase the tax on other tobacco products—which include cigars—from 30 percent of the wholesale price to 90 percent. The tax on moist snuff would also be tripled, though it is computed on a fixed rate, with the bill calling for an increase from 75 cents per ounce to $2.25. Additionally, the bill calls for a floor tax on tobacco products—excluding cigarettes—and moist snuff at the close of business on the last day of the first month following the date of enactment. That rate has not yet been written into the bill. The bills seek to bring the taxes levied on other tobacco products in line with that levied on cigarettes, which is currently $2.70 per pack. Money raised from the increase would go to the Department of Health’s “Smoking and Tobacco Use Cessation Fund,” which funds smoking and tobacco use cessation programs in the state. Should the proposal be approved, it would take effect immediately and apply to tobacco products and moist snuff sold.
Tobacco Tax Hike Proposed in Kentucky
Add Kentucky to the list of states with legislatures that will have to deal with a proposed tobacco tax increase, as three state representatives have introduced a bill that would raise the tax on other tobacco products from 15 to 18 percent of the wholesale price. Reps. David Watkins, D-11; Mary Lou Marzian, D-34; and Tom Burch, D-30, have introduced HB 247, which seeks to increase a number of aspects of the state’s tobacco tax structure. Premium cigars and other tobacco products (OTP) would see an increase from 15 to 18 percent, meaning that a cigar with an MSRP of $9.50 and that currently costs $10.93 would jump to $11.21. Additionally, a floor tax of 5 percent on the actual amount paid would be levied on all premium cigars in stock as of July 31, 2016. The bill also seeks an increase of 50 cents per pack on cigarettes, which would raise it to $1.06, as well as increases in chewing tobacco, snuff and other tobacco products. A floor tax would also be levied on cigarettes and other tobacco products. If approved, the tax increase would go into effect on Aug. 1, 2016.