Monday, September 15, 2014
Joya de Nicaragua Expands Internationally
Thursday, September 11, 2014
General Cigar Acquires All Toraño Brands
Wednesday, September 10, 2014
Nat Sherman to Open Cigar Lounge Atop Knickerbocker Hotel
Monday, September 8, 2014
Diamond-Shaped Cigar From Alec Bradley
Thursday, September 4, 2014
Regius Cigars Fortifies Presence with Exclusivo U.S.A.
- More from News & Features
Michigan Getting Cigar Tax Cap Soon
Posted: September 28, 2012
(Ed. Note) Updated Oct. 1 - An earlier version incorrectly reported that Gov. Snyder had already signed the tax bill.
Cigar consumers in Michigan have reason to cheer as it appears the state's excise tax on cigars will soon be capped at 50 cents per stick. The new tax, which is still awaiting Governor Richard Snyder's signature, is expected to take effect on November 1.
Since an excise tax is considered an indirect tax, tobacconists usually pass the extra cost on to the consumer to recover what they have paid to the government. Michigan’s current excise tax is 32 percent of the wholesale price of a cigar, so the 50-cent cap will be a pleasant reduction. Under the current tax, a $10 cigar, which can carry a $5 wholesale cost for tobacconists, would usually have $1.28 added to the retail cost, not including federal taxes.
Michigan will become the eighth state to adopt a tax cap on cigars, joining Oregon, Washington, Rhode Island, Wisconsin, Iowa, Connecticut and Vermont.
Comments 2 comment(s)
BPatrick Coyle — Cassopolis, MI, USA, — October 1, 2012 4:01pm ET
Float Dub — October 2, 2012 5:58pm ET
You must be logged in to post a comment.