Friday, February 17, 2017
Wednesday, February 15, 2017
Tuesday, February 14, 2017
Monday, February 13, 2017
Friday, February 10, 2017
- More from News & Features
Arkansas Passes Cigar Tax Cap
Posted: March 28, 2013
Arkansas Gov. Mike Beebe signed a bill on Tuesday that caps the state’s excise tax on premium cigars at 50 cents per stick, making it the ninth state to adopt such a cap.
The new law will go into effect on October 1 and will be a pleasant reduction when it replaces the current tax, which is 68 percent of manufacturer’s price.
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. Under the current Arkansas tax rate, a $10 cigar, which might carry a $5 manufacturer cost to tobacconists, $3.40 cents would be added to the final retail cost, not including federal taxes.
States with a cigar tax cap now include Michigan, Oregon, Washington, Rhode Island, Wisconsin, Iowa, Connecticut and Vermont.
You must be logged in to post a comment.
Log in if you're already registered.
Search our database of more than 17,000 cigar tasting notes by score, brand, country, size, price range, year, wrapper and more, plus add your favorites to your Personal Humidor.