Tobacco continues to be a target of tax increases around the different states here in the United States. While there is a perception that a tax increase can help raise revenue and perhaps get some people to stop using tobacco, it is a proven fact that this strategy backfires. Don’t believe me – look no further than the State of New York, where people are now going out of state to get their tobacco products – resulting in LOST revenue.
The OTP tax is known as “Other Tobacco Tax”. Cigar taxes are lumped into this category as this usually includes “everything but cigarettes”. Not only are these tax increases unnecessary, but they run the risk of running the local retailers out of business.
The Cigar Rights of America sent out a communication to its members. I’ve posted it here so people in these states can be aware of what their elected officials are up for. It’s very important to hold those elected officials accountable each November for their actions – as they affect you as Cigar Enthusiasts.
| State | Proposal | Sponsors |
| Maryland | SB 654/HB 853: OTP increase from 15% to 95% on wholesale price | 4 Members of Maryland Senate and 14 Members of Maryland House |
| Kentucky | HB 318: OTP increase 15% to 27.5% on wholesale price | 11 Members of Kentucky House |
| West Virginia | HB 2973/SB 362: OTP tax increase 7% to 50% of wholesale price | Four members of WV House and four members of WV Senate |
| Nebraska | LB 436: OTP tax increase from 20% to 65% of wholesale price | State Sen Mike Gloor |
| New Mexico | SB 81: OTP tax increase from 25% to 57% of wholesale price | State Sen Dede Feldman |
| Mississippi | HB 114: OTP increase from 15% to 22.5% of wholesale price | Rep. Bob Evans |
| Oregon | HB 2385: OTP increase but includes a 50 cent cap on cigars | Gov. John Kitzhaber |
