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]

Originally Posted by Footbag

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.

I think you are correct. And you could see it at the B&M cause the prices went up quite a bit. I couldn't afford to shop at the B&M a lot before, and I haven't purchased from one in over a year now.

[captain53]

Originally Posted by Footbag

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.

That FL Tax proposal failed as did the PA Cigar Tax last year:


April 29, 2009 – Florida’s cigar industry will apparently not have to endure even more taxation at the hands of its own state legislature.

As part of negotiations between the leadership of the state’s House of Representatives and Senate over the state’s new budget, a new $1-per-pack tax on cigarettes will be included, but no taxes will be instituted on cigars. At present, Florida is one of just three states – along with New Hampshire and Pennsylvania – that does not tax cigars.

36 cents/10 would not be a big issue for most is correct but I have read 2 articles about it and both said 30%. Of course it would not be unlike the politicians to say that 30% was about 36 cents/10.... in TX they do that sort of crap every year on property tax proposals.

[captain53]

Originally Posted by ggainey

I think you are correct. And you could see it at the B&M cause the prices went up quite a bit. I couldn't afford to shop at the B&M a lot before, and I haven't purchased from one in over a year now.

Cigar prices have gone up everywhere regardless of local tax. CI and all others have all raised prices recently.

I have not bought more than 5 or 6 cigars at a B&M over the last year and those were bought when I was traveling and just wanted a cigar. There prices are rediculous in most cases.

[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.

[Footbag]

Originally Posted by captain53

That FL Tax proposal failed as did the PA Cigar Tax last year I believe but I sure stand to be corrected on that.

36 cents/10 would not be a big issue for most is correct but I have read 2 articles about it and both said 30%. Of course it would not be unlike the politicians to say that 30 was abou 36 cents/10.... in TX they do that sort of crap every year on property tax proposals.

Yes. Last year, they(PA) proposed a Cigar tax that was supposed to generate $50,000,000. By taxing the same non-cigarette tobacco products. Cigars at $.36/10. This proposal like last years expects to generate $50,000,000. I take that to mean it is the same as last year, but I've been looking for a while now, and I just cannot find any solid info.

Thanks for the info on FL. Your article post dates mine...

Yes, you are correct... In the actual PA budget it shows a 30% tax. That is significant. Well see if it passes. His budget last year didn't pass as written. He actually proposed a Sales Tax increase last year. Go figure.

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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