Cigar Tax Refunds

Tobacco Consultants for Cigar Tax Refunds

Under federal law, a cigar is any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco which is a cigarette). From a federal perspective, cigars are taxed depending on whether they are “small” or “large” cigars. Small cigars, which are cigars that weigh up to 3 pounds per thousand, are taxed at $50.33 per thousand. Large cigars on the other hand are those that weigh more than 3 pounds per thousand and are tax taxed at 52.75% of the sales price but that amount is capped at $40.26 cent per cigar.

Many state laws follow that of the federal statutes. Some states, like Alabama and Arizona, tax cigars based on weight. Other states have a different rate of tax for cigars than other forms of tobacco. Maryland, for example, charges 30% on other tobacco items, yet 70% on cigars. Michigan takes an opposite approach and requires a 32% tax on tobacco and 15% tax on cigars. Still other states, like Florida, do not tax cigars at all.

It is important to understand the taxing scheme for your state as each state can be very different. It is advisable to have a tobacco tax professional at your side when working through the different taxing schemes in the various states. Many states often have loopholes for items like cigars which can be exploited to obtain large refunds.

Some reasons you may be entitled to a refund include:

  • Change in laws
  • Destruction of tobacco property by natural disaster
  • Error in calculations
  • Overpayment of taxes

Whether you are a small business or a global corporation, we are equipped to handle refund claims of all complexities.

Get a FREE cigar tax refund consultation: (888) 918-4690.

Personalized Guidance Throughout the Tobacco Tax Refund Process

We understand that the tax refund process for cigar taxes is not simple. In fact, they are confusing even for most tax professional. But at Tobacco Tax Refund, Inc., we deal specifically with cigar and tobacco tax refunds every single day. We know the administrative procedures inside and out, from the paperwork to how to approach your state's tax authorities. We work hard to make sure you are able to put money back into your business

We can help you through the refund process by:

  • Reviewing all your pertinent tax returns and information to determine if you are due a refund.
  • Gathering and filing all the necessary paperwork.
  • Communicating with the respective state agency to finalize your refund claim.

We are ready to represent clients all across the U.S. Our team of tax professionals has an in-depth understanding of each state's cigar tax laws and refund procedures. Trust in our over 50 years of collective experience and over millions of dollars in refunds recovered for our clients.

Call us today at (888) 918-4690.

You May Be Due for a Refund

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