26 janvier 2009
Small-cigars loophole
He surging popularity of small cigars, available in fruit and candy flavors, is prompting state and local governments to try to regulate and tax them like cigarettes.
Baltimore announced this month that, beginning in October, it will require single cheap cigarettes online retailing for less than $2.50 each to be sold in packs of five.
Last year, three states — Massachusetts, New Hampshire and Rhode Island — passed bills to tax small cigars at the same rate as cigarettes.
Small cigars, the fastest-growing segment of the tobacco market, are the same size as cigarettes but typically have a brown wrapper that contains tobacco.
"States are beginning to close what has become a very serious loophole," says Matt Myers, president of the Campaign for Tobacco-Free Kids, a private group. Most states tax cigars at much lower rates than cigarettes, making them more affordable.
16 mai 2008
NH Senate votes to tax cigar-like cigarettes
The Senate voted 13-11 Thursday to change the definition of a cigarettes to capture smokes being packaged as cigars. Cigars aren't subject to the state's $1.08 per pack cigarette tax.
The bill defines a cigarettes by the materials used to make it and by its weight.
Supporters said the state is losing money from sales of the fake cigars. But Senate Republican Leader Ted Gatsas said the change imposes an unfair cost onto wholesalers who put the tax stamps on the packages. He said they will need new equipment to affix the stamps.
The House next considers the bill.