Applause is in order for Tar Heel State. North Carolina recently became one of more than a dozen states to introduce a tax cap on premium hand-made cigars. North Carolina Governor Roy Cooper and the state legislature recently signed a tax cap of $ 0.30 for every cigar made by hand. The new law will come into force on July 1.
The new law grants North Carolina cigar aficionados relief for every cigar they purchase in physical stores. The state imposes a 12.85% tax on the wholesale price of a cigar, and many cigars sell out twice wholesale, so those who buy a $ 10 cigar will have their state tax reduced. by more than half, from 64 cents in tax to just 30 cents. Even more expensive cigars will lead to greater savings. The cap will not only lower prices for consumers, it will help local cigar stores compete with internet and catalog giants.
The Premium Cigar Association has recognized the efforts of State Senator Todd Johnson for spearheading the tax cap. Johnson is a member of the state’s finance committee and a cigar shop owner himself.
Craig Cass, owner of several Tinder Box cigar stores in the Carolinas, also celebrated the Senator’s work: “On behalf of the tobacconist community across North Carolina, we would like to congratulate and thank the leadership of Senator Todd Johnson, the support of and the final action of the Governor, making this fiscal cap possible. This measure will allow our small businesses to be more competitive, while allowing customers to “shop at home” for top quality handmade cigars… ”
Glynn Loope, State Advocacy Director for PCA, said, “This endorsement… serves as an outstanding national model for others. While tax cap legislation is pending or under consideration in New York, New Jersey and Illinois, this development … is indeed a message to legislatures across the country.
Michigan was previously the most recent state to join the tax cap group, while cigar aficionados across the country are hoping for the same.