The new bill establishes a minimum pricing structure for a cigar which the bill defines as “any roll of tobacco for smoking that is wrapped in leaf tobacco or in any substance containing tobacco, with or without a tip or mouthpiece.” Individual cigars cannot be sold for less than $8 a stick. The bill also creates an excise tax that is 10 percent of the $8 minimum, in addition to state, federal and tobacco taxes. The price of a box of cigars will also be going up. The price for a box of cigars will be calculated by multiplying the number of cigars contained in each box by $1.75 and adding an additional $6.25 to that price. The excise tax for a box of cigars will be 80 cents for the first cigar and .175 cents for each additional cigar. Revenue from the new tax would be used to support public housing.
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