Pennsylvania Governor Proposes Cigar Tax, Again

[captain53]

This would have an effect on many of us because of internet shopping:

http://www.cigaraficionado.com/Cigar...4,3083,00.html

[G G]

They never learn.

[Footbag]

Originally Posted by captain53

This would have an effect on many of us because of internet shopping:

http://www.cigaraficionado.com/Cigar...4,3083,00.html

It sounds bad, but the budget actually drops the Sales Tax rate to 4% from 6%. So for us residents of PA, it would actually be a very, very good thing if the budget passes.
Especially for me. I'm in the furniture business.

Oh yeah, and I think the the Cigar tax is only $.036 per cigar, but if anyone knows where to look, I'd check that number. I'm having difficulty getting it.

[captain53]

Originally Posted by Footbag

It sounds bad, but the budget actually drops the Sales Tax rate to 4% from 6%. So for us residents of PA, it would actually be a very, very good thing if the budget passes.
Especially for me. I'm in the furniture business.

Don't get too excited the locals will make up the sales tax in no time. And for the rest of us not in PA - we don't pay sales tax so nothing positive for us.

[Footbag]

Originally Posted by captain53

Don't get too excited the locals will make up the sales tax in no time. And for the rest of us not in PA - we don't pay sales tax so nothing positive for us.

I don't expect the $.90 / box to lose any sales for the PA cigar industry. It's still a tenth of what SCHIP cost us. And I believe PA will still have the lowest cigar tax of any state.

[captain53]

Originally Posted by Footbag

I don't expect the $.90 / box to lose any sales for the PA cigar industry. It's still a tenth of what SCHIP cost us. And I believe PA will still have the lowest cigar tax of any state.

Please help me with my math: 30% = 90 cents / box? Not sure what kind you buy but that amounts to about $1.20 per cigar on what I currently purchase unless there is a cap that I did not see mentioned which is entirely possible. If 90 cents/box you are correct it does not mater much.

Also FL has -0- Tax on Cigars so not quite sure how PA would still be the lowest. Several other states have less than 30% also.

[Footbag]

Originally Posted by captain53

Please help me with my math: 30% = 90 cents / box? Not sure what kind you buy but that amounts to about $1.20 per cigar on what I currently purchase unless there is a cap that I did not see mentioned which is entirely possible. If 90 cents/box you are correct it does not mater much.

Also FL has -0- Tax on Cigars so not quite sure how PA would still be the lowest. Several other states have less than 30% also.

The proposal I saw was $.36 per 10 cigars, still looking for the actual budget. Didn't Florida begin taxing cigars last year? By weight ($1 per OZ)If I'm correct.

Edit: Now that I'm looking, some sources are quoting 30%. That would be significant, but I'm still trying to find it in the actual budget.

[G G]

I stand corrected, I was thinking about the Schip tax. They did increase the cigarette tax though by $1.00 per pack. And something caused the smokeless and chewing tobacco to go up a lot. Just can't remember if it was the schip or not.

Living in Central PA this could have an effect on me. I have never been a big fan of Mr. Rendell and a lot of people are hoping to see him go once the next election comes. I don't think this helps his case at all.

[captain53]

Today, Governor Ed Rendell put forth his 2010-11 Budget, his 8th and last budget, -- proposing to spend $29.03 billion, or 4.1 percent over the current fiscal year. The Governor is calling for a massive expansion of the Sales Tax, new business taxes, and a new tax on Marcellus Shale drilling.

"At a time when Pennsylvania and average citizens are attempting to climb their way out of the worst recession since the Great Depression, the Governor's tax and spending proposals are putting more obstacles in our path to prosperity," said Sen. Orie.

Overall, the Governor proposed the following tax measures:

Expanding the Sales Tax to include 74 additional items and services including: basic television, candy/gum, coal, firewood, flags, magazines, personal hygiene products, residential telephone service, and water and sewage services.

A new 5% Natural Gas Severance Tax on a new industry in Pennsylvania, which is creating new jobs and opportunities.

Place a new 30% tax on cigars and smokeless tobacco.

Eliminate the 1% Vendor Sales Tax Discount.

Require the adoption of combined reporting for business taxes.

[kelmac07]

Might to time to pull the 'ole Tonya Harding trick on this guy.

[BigAsh]

.....also proposes a tax on professional services, legal, accounting etc. etc.....not a lot of support for the tax and spend lame duck budget

[Kreth]

Um... aren't flags tax-exempt by federal law?
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