California Lowers Tobacco Tax
A rare bit of good news for cigar smokers—taxes in California are going down.
The California Board of Equalization will lower the state’s surtax on Other Tobacco Products, which includes premium cigars, on July 1. California is one of the largest cigar markets in the country.
Each year, the BOE reviews the state’s sales tax structure to ensure it is fair and uniform, then adjusts accordingly.
This year, the board opted to cut the current surtax rate from 41.11 percent to 33.02 percent.
Surtaxes are paid by distributors, and part of the revenues go to tobacco-health education programs, but the reduction could mean consumers pay a lower price for premium smokes.
By Andrew Nagy, June 3rd, 2010, cigaraficionado.com