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.