Stogie News: Florida Senate Exempts Many Cigars from Massive Tobacco Tax Hike

A $1-per-ounce tax on cigars has passed the Florida State Senate, but only after an amendment was added that would lessen the damage to the Sunshine State’s historic cigar industry. That amendment exempts cigars produced in Florida that are shipped out of state from the tax.

Padilla, Don Pepin Garcia, Tatuaje, J.C. Newman, and La Gloria Cubana are just some of Florida’s many cigar producers. Tampa’s Ybor City and Miami’s Little Havana have longstanding historic ties to the cigar industry, and both are the centers of cigar culture in the United States.

According to Jeff Borysiewicz, owner of the Florida-based Corona Cigar Company and board member for Cigar Rights of America, the hike will result in a 50 cent to $1 per cigar increase on the retail price of cigars, on top of a similar increase already in effect due to the recent federal SCHIP tobacco tax increase.

The amendment is considered a partial victory since it will exempt the estimated 85% of Florida-made premium cigars that are shipped out of state. However, after just being hit by the SCHIP tax, that percentage is little solace to Florida-based retailers who, if the Senate tax becomes law, will have raised the price of many cigars by over one dollar in just a few months.

Last week, cigar smokers took to the streets as part of protest organized by Cigar Rights of America. Over one hundred protesters showed up to demonstrate their opposition to tobacco taxes and warn of the devastating impact that more tax hikes could have. One Florida state senator predicted as many as 10,000 jobs would be affected by an increased cigar tax.

Fortunately for the Florida cigar industry, the tax is far from certain at this time as an alternative budget proposal from Florida House leadership doesn’t include any new tobacco taxes. Both state houses of government have large Republican majorities.

Republican Governor Charlie Crist has also made statements suggesting he would be opposed to tobacco tax hikes.

-Patrick S

photo credit: Stogie Guys