Pennsylvania Lawmakers Reject Cigar Tax Proposal

Andrew Nagy
Posted: July 1, 2010

Cigar enthusiasts in the Keystone State can rest a little easier as lawmakers on Wednesday removed Gov. Ed Rendell's 30 percent tax proposal on cigars and Other Tobacco Products from the $28 billion Pennsylvania budget.

This was the second time in as many years that Rendell has attempted to pass a first-ever tax on cigars in the state. Pennsylvania is one of only two states that does not tax cigars, with Florida being the other.

Pennsylvania, though, is the only state in the country that does not tax smokeless tobacco and snuff.

Rendell and other lawmakers are facing a $1.2 billion budget shortfall, and the latest budget, according to the Pittsburgh Tribune-Review, increases overall spending by only 1 percent.

The budget now awaits Rendell's signature.

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