HI HB247

Increases the excise tax on large cigars from 50% to 70% of the wholesale price, effective January 1, 2018.

Aligns the large cigar tax rate with the tax rate applied to other tobacco products (excluding cigarettes and little cigars), which is currently 70% of wholesale price.

Applies the new tax to large cigars of any length sold, used, or possessed by wholesalers or dealers, whether or not sold at wholesale.

Legislation finds that cigars pose similar health risks to cigarettes, including cancer and lung disease, and that lower cigar taxes create an affordable alternative that may discourage tobacco cessation.

Takes effect July 1, 2017, with the new tax rate applying to sales on and after January 1, 2018.