Wednesday, July 01 2009
Chris McCalla, Legislative Director,
IPCPR
New Hampshire's Legislature approved their budget that includes new tobacco taxes. For the first time, most cigars will be taxed as OTP (other tobacco products) at the new rate of 48.59%. The previous OTP excise tax rate was 19%. The state's cigarette tax will also increase 45 cents to $1.78 per pack.
The only good news from this latest tax increase is that premium cigars will remain out of the OTP category and will not be taxed. As per definition, a premium cigar is "made entirely by hand of all natural tobacco leaf, hand constructed and hand wrapped, wholesaling for $2 or more, and weighing more than 3 pounds per 1000 cigars. These cigars shall be kept in a humidor at the proper humidity."
The District of Columbia is currently the only other jurisdiction that defines and segregates premium cigars and exempts them from excessive taxation.
The new tax rates are effective July 1, 2009.
Much of credit for this effort goes to IPCPR's retailers working together as the Cigar Association of New Hampshire. It was a long, arduous fight, and ultimately, their efforts to protect their brick-and-mortar businesses succeeded.
For information on tobacco legislation in your state, please visit, the International Premium Cigar & Pipe Retailers Association website.
