HB 769 Summary

• Adds a new excise tax on large cigars effective July 1, 2017, equal to the lesser of 50 cents or 50 percent of the wholesale price per cigar.

• Modifies Hawaii Revised Statutes Section 245-3(a) to establish this new tax rate alongside existing cigarette and tobacco product excise taxes.

• Replaces the previous large cigar tax structure established September 30, 2009, which taxed large cigars at 50 percent of wholesale price with no dollar cap.

• Tax applies to large cigars of any length sold, used, or possessed by wholesalers or dealers, whether or not sold at wholesale.

• Provides for refunds or credits of tax paid on cigars that become subject to casualty loss deductions under Hawaii tax law.