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Michigan Governor Approves Cigar Tax Cap

Andrew Nagy
Posted: October 10, 2012

Michigan Governor Richard Snyder has signed legislation that caps the state's excise tax on cigars at 50 cents.The new law was signed on Tuesday and goes into effect on November 1.

A spokesman for the governor said that the new 50-cent cap should help Michigan cigar shops compete with online cigar retailers that don't collect the tax.

In addition, the tax cap will also reduce the price cigar enthusiasts pay for most premium cigars in a retail shop.

Michigan is now the eighth state to adopt a tax cap of some sort on premium cigars, joining Oregon, Washington, Rhode Island, Wisconsin, Iowa, Connecticut and Vermont.

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