Later today, an committee in the Oregon House of Representatives is expected to vote on S.B. 925-A4, a new measure that would increase taxes on a variety of things in the state, including premium cigars. The overall vote will be over extending tax credits, which need to be renewed every six years, but for cigar smokers, it could mean a drastic increase in the price of cigars. Currently, cigars are taxed at 65 percent of the wholesale price, capped at 50 cents. The proposed legislation calls for removing the cap. If the cap was removed, it would likely increase the cost of every cigar that has a suggested retail price (SRP) greater than around $1.50. Currently, a cigar that has a SRP of $5.50 likely retails for around $6.50 in Oregon, that would increase to over $9 if the cap was to be removed. And it only would be worse for more expensive cigars. A cigar that retails for $10.50 currently would likely increase in price to $15.68, a cigar that retails for around $12 before taxes could now be as much as $20 due to the removal of the cap. With the cap, Oregon currently has a cigar tax that is ...
↧