Maryland Bill Would Eliminate Tax On Premium Cigars

Maryland Bill Would Eliminate Tax On Premium Cigars

A Maryland Senate committee will conduct a hearing on Friday for a bill that seeks to exempt premium, handmade cigars from the state’s tobacco tax.

Currently, Maryland taxes premium cigars at a rate of 15 percent of the wholesale price. Senate Bill 826, which was introduced by Sen. Andrew Serafini (R-District 2), would completely exempt premium cigars from that tax. The state of Maryland defines a premium cigar as having “hand-rolled wrappers made from whole tobacco leaves where the filler, binder, and wrapper are made of all tobacco, and may include adhesives or other materials used to maintain size, texture, or flavor.”

SB 826 was also cross-filed with House Bill 1291. That bill, which shares the same language as SB 826, was deemed “unfavorable” by the House Rules and Executive Nominations and was withdrawn earlier today.

The Senate Committee on Budget and Taxation hearing for SB 826 is scheduled for 1 p.m. on Friday.