Higher Taxes Threatening California Retailers

David Savona
Posted: April 26, 2006

California cigar retailers are dreading The Tobacco Tax Act of 2006, a ballot initiative sponsored by health groups that could dramatically increase the cigar tax in California. The state, already burdened with one of the highest tobacco tax rates in the United States, will impose a tax rate of 135 percent if the measure passes. The initiative is expected to go before voters in November.

Some retailers fear the increased tax would cost them not only customers, but their businesses as well.

"If this happens," said David Berkebile, president of the Retail Tobacco Dealers of America trade association, "every tobacco shop in California will be out of business."

For more on this story, see the current issue of Cigar Insider.

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