Ok, someone explain the need for this legislation to me. Representative Sean Matthews, a good progressive legislator, has introduced HB417, which would prohibit a tax rate greater than 50 cents per cigar upon the sale and use of premium cigars. Does Sean Matthews enjoy a good cigar on occasion? Is there some cigar crisis going on? Or perhaps our legislators are finally souring on Sin Taxes as a source of revenue.
HB417 – Cigar Tax Cap
STATUS – Waiting on a hearing in committee
HISTORY – House Revenue & Finance 5/10/18
SPONSORS – Matthews, Bonini, Bennett, Brady, Ramone, B.Short, Viola
YES –
NO –
ABSENT –
NOT VOTING –
Souring on sin taxes? No way! It would require them to do something besides raise taxes on liquor and cigarettes, it might even require raising taxes on the rich!!! Every now and then I stumble upon Dover politicians at work, a tax here and a price increase there. The only thing that holds them back is the proximity of Maryland.
My guess is that since the rate on cigars is 30%, it may prevent some cigar distributors from bringing in $25 Cuban cigars (making them $32.50). This is, of course, never going to be paid by any consumer because the whole state lives 20 mins from another state.
https://revenue.delaware.gov/information/faqs_cig.shtml