TAX DEADLINE, APRIL 15, APPROACHING

While there are many traditions and rituals associated with cigar smoking, such as selecting a cigar based on personal taste preferences, mood, and occasion, carefully cutting the cigar using a specialized tool, and lighting the cigar using a butane lighter or cedar spill, there doesn’t seem to be a specific tradition tying cigars to tax day.

However, it’s worth noting that the taxation of cigars has a long history. Cigar makers have been at odds with the tax collector since the Civil War. For instance, about 150 years ago, the government wanted a piece of the burgeoning cigar industry, leading to resistance and corruption. Eventually, Congress mandated that cigars be boxed or bundled by 10s, 20s, or 50s, so they could manage the counting and the collection process.

Today, cigars are taxed a percentage of their wholesale price. Before your imported premium cigar even hits the shelf, it is taxed nearly 53%. This federal tax caps at roughly 40 cents per individual cigar. Most companies roll this cost directly into their wholesale price. Retailers then need to factor in their individual state tobacco tax along with sales tax.

About Julian Spring

Julian Spring is the founder and editor of Broward Cigar Board, covering premium cigar news, releases, and reviews since 2019. Based in South Florida, he hosts community events with premium cigar brands, local retailers, and leads an 11,000+ member cigar community across Instagram and Facebook. Reach him at press@browardcigarboard.com.

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