Tuesday, April 13 2010
By Chris McCalla, Legislative Director, IPCPR.org
April 14, 2010 - The State Legislature approved additional tobacco taxes, bringing an end to a drawn-out special session.
The Legislature approved an increase in the state's cigar tax cap from 50 cents to 65 cents per cigar. The proposal sought to increase the tax cap increase from the current rate to $2.52 per stick.
Additionally, the state's OTP excise tax rate will go from 75% to 95%. Little cigars with a cellulose acetate integrated filter will be considered a "little cigar" and be taxed at the cigarette tax rate -- which was increased by one dollar to $3.025 per pack; moist snuff will be taxed on a weight basis -- cans or packages with a net weight of 1.2 ounces or less will be taxed the greater of $2.526 or 83.05% of the cigarette tax, effective October 1, 2010.
The only consolation in this tax increase is the fact that no floor stocks provision was included in the approved legislation.
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