Michigan Passes Permanent Tax Cap On Cigars

Michigan Passes Permanent Tax Cap On Cigars

Rising sales tax will no longer be a cause for concern among Michigan’s cigar smokers. State lawmakers passed legislation this week that places a permanent 50-cent tax cap on individual cigars, extending a provision that was set to expire in the next two years. 

The current tax laws on cigars have been in place since 2012, but the existing cap would have only protected cigars until October 2021. Michigan Senate Bill 0304, assuming it will be signed into law, will make this cap permanent. 

The bill was first introduced in April 2017, but did not make it out of the Senate until earlier this month. The Michigan House, however, introduced and passed the bill within a 12-day period. 

It is currently unclear if the bill will arrive on the desk of outgoing Governor Rick Snyder or governor-elect Gretchen Whitmer, who will be sworn in on January 1, 2019.