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Bill That Would Have Ended Tax-Free Internet Cigar Sales Stalled

Andrew Nagy
Posted: November 7, 2013

(continued from page 1)

"This bill could back anytime," said Williamson. " I still believe the Senate will try and put out a different version of the bill and send it over to the House."


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Comments   4 comment(s)

Edward Brandyberry — CORAOPOLIS, Pennsylvania, United States,  —  November 8, 2013 10:42am ET

Lobbyists, like most politicians, lie all the time about the results of taxes or no tax. I work for a brick and mortar and also have a monthly shipment from an online company in my state (PA). I pay tax online and they collect it.
The addition of this tax will only cause the big internet stores to collect and remit tax as everyone else does. It will NOT end people buying online. The attraction to online is based on two things BASE PRICE and VARIETY.
Let me discuss variety first. Our store, The Smoke Stack in Moon Twp, PA, has over 400 facings of cigars, which is not bad for a one year old lounge. But cigar.com in Bethlehem, PA has more blends than we have facings. They also sell trashy cigars to ultra premiums. Like a B&M they take their chances in inventory control. Do you really think someone will quit buying online, just because the tax is added on, like everything else we buy!
The big online cigar companies also have a pricing advantage. Because they have adopted the volume model (i.e., move as much product as fast as you can with a modest profit=more total dollars), they are sometimes less expensive on a single cigar, usually less expensive in box purchases and come up with samplers and combinations that many B&M stores will not touch.
Guess what? You cannot smoke your cigar at the online store. You often can at a B&M. We set our prices at MSRP and we give a 10% discount on boxes. But that is a business decision we made. Many B&M abide by Keystone pricing to their own hurt.


George C — Commack, NY, USA,  —  November 10, 2013 8:53am ET

The New York tax on cigars is out of control. Soon they will be taxing the taxes.


deturk8@hotmail.com November 11, 2013 2:35pm ET

In Massachusetts, you pay sales tax on the price of a Cigar(which includes the 40% cigar tax). So you are paying a tax on the tax in Mass.


Marc — Boston, MA, USA,  —  November 12, 2013 6:38pm ET

Massachusetts is one of the more onerous states in the country. If they could charge you for breathing air, they would.


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