How about some good news when it comes to tax rates and cigars?
The ICPCR reports…
California’s Other Tobacco Products (OTP) Excise Tax Rate Drops for Fiscal Year 2012-13
State Revenue and Tax Code Section 30126 requires the Board of Equalization to annually review and determine the Other Tobacco Products (OTP) excise tax rate. The new excise tax rate is effective July 1, 2012 and will remain in effect for the 2012-13 fiscal year.The 2012-13 OTP excise tax rate is based on the wholesale price of premium cigarettes as of March 1, 2012.The new California excise tax rate will be 30.68%. This represents a reduction from the 2011-12 rate of 31.73%.
Although the “amount” of reduction may not seem like much – especially given the massive amount cigars are taxed – it is still as step in the right direction!