Idaho Passes 50 Cent Tax Cap On Cigars
Cigars in the state of Idaho will soon become cheaper thanks to a 50-cent tax cap that just became law. Previously cigars in the state were taxed at 35 percent of their wholesale price, with no limit. Most cigars carry a retail price of twice wholesale value, meaning a $10 cigar would have a tax of $1.75 in Idaho, a $15 cigar would have a tax of $2.62 and a $20 cigar would have a tax of $3.50. That will now be capped at 50 cents, regardless of the price. The new law will go into effect on July 1.
“This is a victory over eight years in the making,” said Idaho tobacconists Paul Banducci and Josh Evarts, in a joint statement provided by the Premium Cigar Association. “What began as one small family-owned shop in North Idaho pushing for economic fairness, has culminated in a strong network of shops, legislators, and customers across the state coalescing to achieve what, a decade ago seemed impossible. This adjustment in tax policy will make our local small businesses more competitive.”
The bill, known as H.B. 330, passed the Idaho House of Representatives in convincing fashion, with a vote of 61 to 10, then went on the Idaho Senate where it passed, 25 votes for to eight against. Gov. Brad Little signed it into law yesterday afternoon. Gov. Little has been in office since 2019.
“This was a textbook initiative of local shop owners, building upon their relationships with members of the legislature, making their case and ushering a bill through the process,” said PCA Director of state advocacy Glynn Loope. “I had productive discussions and strategy calls with Idaho state senator Carl Bjerke, and PCA welcomed the opportunity to provide testimony, grassroots advocacy and research support. These local shops, though, made the difference.”
Read Next: New FDA Proposal Takes Aim At Tobacco Industry Manufacturing And Distribution
