Tobacconist Tax
This is a list of the current state taxing method on cigars. The tax table comes from Cigar Magazine and is being published as a way to archive our current state as we face many legislative battles across the country.
Hopefully the cigar tax list is also useful to those who frequently travel to cigar lounges around the county. And maybe, maybe – this can be a simple answer the patron who sometimes says “I can get this online for much cheaper, why are you trying to rip me off?”
Alabama – 4.05 cents per cigar
Alaska – 75% of the wholesale price
Arizona – 22 cents per cigar
Arkansas – 68% of the manufacturers selling price
California - 41.1% of the cost to the distributor (changes every July)
Colorado - 40% of the manufacturers list price
Connecticut - 27.5 percent of the wholesale price
Delaware - 15% of the gross wholesale price
Georgia - 23% of the gross wholesale cost
Hawaii - 50% of the wholesale sales price
Idaho - 40% of the wholesale sales price
Illinois - 18% of the wholesale price
Indiana - 24% of the wholesales sales price
Iowa - 50% of the wholesales price, capped at 50 cents
Kansas - 10% of the wholesale sales price
Kentucky - 15% of the wholesaler’s gross receipts
Louisiana - 20% of the invoiced price
Maine - 20% of the wholesale sales price
Maryland - 15% of the wholesales purchase price
Massachusetts - 30% of the price paid by the distributor
Michigan - 32% of the wholesale price
Minnesota - 70% of the gross wholesale price
Mississippi - 15% of the manufacturer’s gross list price
Missouri - 10% of the manufacturer’s gross invoice price
Montana - 50% of the wholesale price
Nebraska - 20% of the manufacturer’s selling price
Nevada - 30% of wholesale price
New Hampshire – 48.6%, exempt on premium cigars wholesaling for $2 or more.
New Jersey – 30% of the wholesale sales price
New Mexico – 20% of the wholesale price
New York – 46% of the wholesale price
North Carolina – 12.8% of the wholesale purchase price
North Dakota – 28% of the wholesale purchase price
Ohio - 17% of the wholesale purchase price
Oklahoma - .12 cents per cigar
Oregon - 65% of the wholesale cost price, capped at .50 cents per cigar
Rhode Island – 80% of the wholesale cost price, capped .50 cents per cigar
South Carolina - 5% of manufacturer’s selling price
South Dakota – 35% of the wholesale purchase price
Tennessee - 6.6% of the wholesale cost price
Texas - 1.1 cent per cigar
Utah - 35% of manufacturer’s sale price
Vermont - 92% of price paid by the retail vendor
Virginia - 10% of the wholesale price
Washington - 75% of the wholesale sale price, capped at .50 cents per cigar
West Virginia – 7% of wholesale sales price
Wisconsin - 71% of manufacturer’s list price, capped at .50 cents per cigar
Wyoming - 20% of the wholesale purchase price
Washington D.C. - 12% of gross receipts for cigars retailing at less than $2 each
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Very interesting timing. I just finished reading this in the magazine. I was shocked to see the variation between states. Makes me think twice about shopping in certain places.
It also explains why certain online vendors will sell only outside the state in which they are based–they don’t want to be a tax collector for the state at the same time as giving residents of that state a right to complain that they are being treated unfairly by the retailer.
The worst thing is that if you buy online, and thereby avoid tobacco taxes in your state, you are generally obligated to declare that to your state’s taxing authority and ante up by April 15. Not that anyone actually does that…
Many states have sales tax on top of the cigar tax. In Chicago it ends up being just under 25%.
Where’s Florida on that list?
MA has a 6.25% tax tacked on AND has been known to try to track down tax “evaders”…
[...] Puffing Cigars has some very good information about State Taxes on Cigars [...]
[...] Puffing Cigars has some very good information about State Taxes on Cigars [...]