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Pennsylvania Governor Proposes Cigar Tax

Andrew Nagy
Posted: March 2, 2009

Cigar smokers in Pennsylvania, already facing a federal cigar tax increase, could find themselves paying even more per stick next year if Gov. Edward Rendell's budget proposal is passed.

The governor's budget plan calls for a first-ever tax on premium cigars of 3.6 cents a stick. Coupled with the recent renewal of the State Children's Health Insurance Program, taxes on a single cigar in the Keystone State could jump from 5 cents to roughly 43 cents per cigar.

In 2007, Rendell proposed the same "sin" tax, which was defeated.

Pennsylvania is home to some of the nation's largest cigar distributors, including Cigar International, Holt's Cigar Co. and the Tinder Box.

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