Cigar Tax Proposed for Pennsylvania

David Savona
Posted: March 9, 2007

Pennsylvania may soon have a tax on cigars, but any levy would likely be very small.

In February, Gov. Ed Rendell announced his new budget. Included in those plans, according to the Pittsburgh Post-Gazette, was a 36-cent-an-ounce tax on cigars, smokeless tobacco and other tobacco products other than cigarettes. The budget also called for a cigarette tax increase of 10 cents a pack.

The OTP tax, if passed, would be noticeable to smokers of cheap machine-made cigars, but barely perceptible to those who enjoy premium, handmade cigars. Pennsylvania currently has no tobacco tax on cigars. The proposed tax will now go before the state senate and house, along with the other items in the budget.

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