A new piece of legislation introduced into the Virginia House of Representatives is seeking a massive increase on the tax of a number of cigar products, including premium cigars. House Bill 1590, filed by Rep. K. Rob Krupicka (D-45) wants to increase the tax rate on tobacco products other than cigarettes, moist snuff and loose leaf tobacco from 10% of the wholesale price to 60%. For a cigar with an MSRP of $9.50, that would bring the pre-sales tax cost from $10.45 to an estimated $15.20. The bill also seeks increases on loose leaf tobacco, proposing an increase from $0.21 to $1.26 for each loose leaf tobacco single-unit; $0.40 to $2.40 for each loose leaf tobacco half pound-unit; and from $0.70 to $4.20 for each loose leaf tobacco pound-unit. For any other unit, pouch, or package of loose leaf tobacco, the tax shall be by net weight and increased from $0.21 to $1.26 per unit, pouch, or package plus $1.26 for each increment of 4 ounces or portion thereof that the loose leaf tobacco exceeds 16 ounces, an increase from $0.21. The bill was profiled on Jan. 8 and referred to the House Committee on Finance shortly thereafter.
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