Nevada’s 50-Cent Tax Cap On Cigars Signed Into Law
The state best known for its sinful city and expansive natural landscapes is easing the wallets of local cigar smokers. Nevada is set to join a handful of other states that have instituted a tax cap on cigars as Gov. Joe Lombardo signed AB 232 into law this weekend creating a 50-cent tax limit on the sale of premium smokes. The law will go into effect on July 1.
The current Nevada tax rate on premium cigars is 30 percent of the wholesale price. Typically, cigars will retail at roughly double the wholesale value, giving, for example, a $10 cigar a tax of $1.50, a $15 smoke a tax of $2.25 and a $20 cigar a tax of $3. In a few days, cigar smokers will see tax breaks of $1 to $2.50 for those types of cigars.
The bipartisan bill was sponsored by Assemblymen Brian Hibbetts (R) and Duy Nguyen (D). The bill was introduced in March, and AB 232 passed in the Nevada Assembly 35 to seven in a late May vote, then made it through the Senate a week later with a 18-3 vote.
PCA director of state advocacy Glynn Loope gives significant credit for the bipartisan support and passage of the bill to Nevada tobacco shop owners. “Nevada’s community tobacconists made the case in a manner that sets a national example,” said Loope. “They built a bipartisan coalition of legislative support, made the case that the tax cap was a small business issue that would improve their competitive position, and discussed the impact on women and minority-owned small businesses at hearings.”
Loope gives a particular salute to Nevada lobbyist Mike Sullivan of The Ferraro Group and prominent Nevada shop owner Michael Frey, as well as Jason Samuelson of Cigar Box, Michelle Runles of Tap N Ash Social Club, Shar Broumand of En Fuego Cigars and Lounge and Brad Mark of SMōK Cigar Lounge.
This marks the third such time a cigar tax cap bill has been passed in the U.S. this calendar year. Idaho set a 50-cent cap back in April, which was followed by Montana in May who lowered their tax threshold to 35 cents a stick. Several other states have had similar tax cap proposals introduced into their legislative bodies as of late and the recent move by Nevada only serves to strengthen the prospects of these bills.
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