Page 7 - TOB Magazine March/April 2013
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TOBACCO OUTLET BUSINESS
MARCH/APRIL 2013
NEWS & TRENDS
State Cigarette and Tobacco Tax Update
The National Association of Tobacco
Outlets has provided an update on
recent and pending action by states to
increase or decrease cigarette and/or
tobacco tax rates, as follows:
Alabama:
House Bill No. 15 would
increase the cigarette tax from 42.5
cents per pack to 75 cents per pack
and House Bill No. 177 would raise the
cigarette tax to $1.425 per pack.
Kentucky:
House Bill No. 142 would
increase the tax on other tobacco
products from 15 percent to 40 percent
of the wholesale price.
Maryland:
Senate Bill No. 700 and
House Bill No. 683 would raise the tax
on other tobacco products from 30
percent to 95 percent of the wholesale
price provided that cigars with a
wholesale price of less than $20 per
cigar will be taxed at 95 percent with
a cap of $3.00 per cigar, cigars with a
wholesale price of more than $20 per
cigar will be taxed at 15 percent, little
cigars will be taxed at a rate of $3.00
per pack of 20, moist snuff will be taxed
at 95 percent or $3.00 per 1.2-ounce
container (whichever is greater), single-
dose smokeless tobacco will be taxed
at 95 percent or 15 cents per dose
(whichever is greater), and roll-your-
own tobacco will be taxed at 95 percent
or $3.00 per .65 ounces (whichever is
greater). Senate Bill No. 823 and House
Bill No. 683 would increase the cigarette
tax by $1.00 per pack to a new rate of
$3.00 per pack.
Nebraska:
Legislative Bill No. 439
would raise the cigarette tax from 64
cents per pack to $1.36 per pack.
New Hampshire:
House Bill No. 659
would increase the cigarette tax by 20
cents per pack to a new rate of $1.88
per pack.
New York:
Senate Bill No. 3193
would raise the cigarette tax from $4.35
per pack to $6.00 per pack.
New Mexico:
House Bill No. 428
would raise the tax on other tobacco
products from 25 percent to 53 percent
of the wholesale price.
North Dakota:
House Bill No. 1387
that would have raised the cigarette
tax from 44 cents per pack to $1.00 per
pack failed to pass the House.
Tennessee:
House Bill No. 888 would
decrease the cigarette tax by 20 cents
per pack from 62 cents to 42 cents on
July 1, 2013, reduce the cigarette tax
by 20 more cents per pack on July 1,
2014 and eliminate the cigarette tax
completely on July 2, 2015. The bill
would also phase out the tax on other
tobacco products over a six-year period
with the tax completely eliminated as of
July 1, 2018.
Virginia:
House Bill No. 2332 that
would have changed the method of
taxation on moist snuff and loose leaf
tobacco from a weight-based tax to five
percent of the retail sales price died in
committee.
Seen at TPE 2013...
Dean Rouse and Ed O’Connor
announced the winner of a $250
cash give-away by the Farmer’s Gold
Pipe Tobacco & Dean’s Large Cigars
booth at TPE 2013; Paul Ballow
of Paul’s Pipe Shop. For more on
Ballow, please see p. 78.
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