A bill that would slash the cigar tax in Minnesota from $3.50 per cigar to just $0.50 per stick has been introduced to the state legislature. HF 1544 was introduced by Rep. Jim Nash (R-Waconia) along with eight co-sponsors on March 9, and following the bill’s first reading it was referred to the House Committee on Taxes. A companion bill, SF 1894, was introduced in the state Senate on March 19 and referred to the Senate Committee on Taxes. While the tax rate on cigars in Minnesota is 95% of the wholesale price, a cap of $3.50 per cigar was placed on that tax when it was passed in May 2013. The bill seeks not only to lower the tax on premium cigars but reworks the definition slightly, seeking to remove the term “hand-rolled” while leaving the term “hand-constructed.” The proposed definition reads: “Premium cigar” means any cigar that is hand-constructed and hand-rolled, has a wrapper that is made entirely from whole tobacco leaf, has a filler and binder that is made entirely of tobacco, except for adhesives or other materials used to maintain size, texture, or flavor, and has a wholesale price of no less than $2. If the bill were to ...
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