HI HB2741

Establishes a definition for "premium cigar" distinct from "large cigar" with specific criteria including whole tobacco leaf wrapper, 100% leaf tobacco binder, at least 50% long filler tobacco, handmade construction, no filters or non-tobacco tips, no characterizing flavors other than tobacco, only tobacco/water/vegetable gum ingredients, and weight exceeding 6 pounds per thousand units.

Adds a definition for "characterizing flavor" meaning distinguishable taste or aroma of candy, chocolate, vanilla, fruit, berry, nut, herb, spice, honey, or alcoholic drink imparted to tobacco products, excluding tobacco taste itself.

Excludes premium cigars from the existing 70% percentage excise tax on tobacco products, instead establishing a flat excise tax of 50 cents per premium cigar effective January 1, 2025.

Modifies the tax code to separately classify premium cigars alongside large cigars and other tobacco products while maintaining distinct tax treatment for each category.

Effective date July 1, 2024, with the premium cigar excise tax taking effect January 1, 2025.