Legislation

Delaware Bill For Lower Taxes On Premium Cigars Passes House Committee

Apr 14, 2022 | By Gregory Mottola
Delaware Bill For Lower Taxes On Premium Cigars Passes House Committee
iStock/Getty Images
Delaware Legislative Hall

Cigar smokers in “The First State” may be getting a tax break in the future. The Delaware House Revenue & Finance Committee voted yesterday to advance S.B. 131, a bill that will cut the state tax on premium cigars in half, from 30 percent of the wholesale price to 15 percent.

Now that the bill has overwhelmingly passed the Finance Committee (by a vote of 10-2 with one abstention), it has to go to the House Appropriations Committee before reaching the Assembly floor.

The bill was introduced on May 10, 2021 by Democrat State Senator Laura Sturgeon. It applies solely to premium cigars, defined in the legislation as:

  • Made entirely of tobacco, including the wrapper, binder, and filler
  • Hand rolled
  • Contains no filter, tip, or any mouthpiece consisting of material other than tobacco, or any additional flavoring 

The bill aims to make Delaware’s premium cigar tax rate competitive with the tax rates of its surrounding states. Maryland’s tax on premium cigars is 15 percent of the wholesale tax, Pennsylvania doesn’t have any tobacco tax at all, and New Jersey has a tax rate of 30 percent. 

According to the official fiscal note, the tax reduction is estimated to cost the state of Delaware $627,200 in annual revenue for the year 2023. 

“This is a unique opportunity to address a source of assistance for small businesses and their patrons that are based in Delaware,” said Joshua Habursky, deputy executive director for the Premium Cigar Association, in his testimony before the committee. 

“S.B. 131 is a pro small business bill that the Premium Cigar Association strongly endorses.” 

Delaware

More in Legislation

See all
Federal Judge Issues Opinion In Favor Of Cigar Industry

Federal Judge Issues Opinion In Favor Of Cigar Industry

The premium cigar industry received good news today as Judge Amit P. Mehta issued his opinion on the …

Jul 5, 2022
Federal Judge Hears Cigar Industry Case Against FDA Regulations

Federal Judge Hears Cigar Industry Case Against FDA Regulations

Judge Amit P. Mehta heard arguments in the lawsuit pitting the U.S. Food & Drug Administration …

May 23, 2022
Miami Judge Rules Cruise Companies Liable For Using Cuban Port Facilities

Miami Judge Rules Cruise Companies Liable For Using Cuban Port Facilities

Judge Beth Bloom wrote that the cruise ship companies had engaged in “trafficking activities” by …

Mar 24, 2022
FDA-Funded Scientific Study on Premium Cigars Released

FDA-Funded Scientific Study on Premium Cigars Released

The findings indicate that the risks associated with other tobacco products are different from those …

Mar 11, 2022
Florida Legislature Passes Bill Targeting Beach and Park Smoking—But Spares Cigars

Florida Legislature Passes Bill Targeting Beach and Park Smoking—But Spares Cigars

Smoking on Florida's beaches and parks is under attack from legislation, but lawmakers are sparing …

Mar 3, 2022
New Zealand to Create Lifetime Ban on Tobacco For Much Of Its Population

New Zealand to Create Lifetime Ban on Tobacco For Much Of Its Population

How old do you have to be to buy a cigar, or another tobacco product?

Dec 9, 2021