States look to close small-cigars loophole

Sunday, January 25 2009

The surging popularity of small cigars, available in fruit and candy flavors, is prompting state and local governments to try to regulate and tax them like cigarettes.

Baltimore announced this month that, beginning in October, it will require single cigars retailing for less than $2.50 each to be sold in packs of five.

Last year, three states - Massachusetts, New Hampshire and Rhode Island - passed bills to tax small cigars at the same rate as cigarettes.

Small cigars, the fastest-growing segment of the tobacco market, are the same size as cigarettes but typically have a brown wrapper that contains tobacco.
States look to close small-cigars loophole continues...