SB 24-102

Senate Bill 24-102, which has been signed into law, reduces the state tax on premium cigars from 36% of the manufacturer's list price (MLP) until June 30, 2027, and then to 42% MLP starting July 1, 2027, down to a consistent rate of 20% MLP. This change applies only to premium cigars and does not affect an additional 20% tax mandated by the state constitution. The bill benefits cigar enthusiasts and businesses selling premium cigars by lowering their tax burden compared to previous rates since 2005. Since it has been signed, the law will take effect as scheduled starting July 1, 2024.

Official Summary

Effective July 1, 2024, the bill defines "premium cigars" and reduces the statutory rate of taxation of this particular tobacco product from the current rates for all non-cigarette tobacco products other than moist snuff of 36% of the manufacturer's list price (MLP) from July 1, 2024, through June 30, 2027, and 42% of the MLP on and after July 1, 2027, to 20% of the MLP, effectively rolling back the increases in the statutory taxation rate for such tobacco products since 2005. The bill does not affect taxation of premium cigars under section 21 of article X of the state constitution, which imposes an additional 20% tax.(Note: This summary applies to this bill as introduced.)