Minnesota Raises Cigar Tax

Minnesota already has some of the highest taxes on cigars but after last week’s new law was signed they are getting another tax hike on cigarettes, cigars and other tobacco products.

Governor Mark Dayton signed the tax increase last week which will go into effect July 1st. Under the old law cigars were taxed at 75% the wholesale cost, meaning every cigar carried at least a dollar in tax depending on how retailers priced them. The new tax increase raises other tobacco product taxes to 95% but will have a cap in place at $3.50 a cigar.

Despite the increase some cigar retailers see it as a victory. Jeff Haugen, owner of Tobacco Grove, along with many cigar industry professionals, has been trying to get the point across on what premium cigars are. “The main goal that we had this year was getting a clear definition of what a premium cigar was,” said Haugen. Through the cap premium cigars will be recognized as separate from other tobacco products like sniff, snuff, roll your own and small cigars.

Men and women in the cigar industry have been trying to educate the legislature on how the premium cigar world works and what separates cigars from other tobacco products. Although the tax increase isn’t good news for cigars, we’re happy to hear that premium cigars are at least being separated from other tobacco products.


Search For:

Recent News


Best Cigar Stocking Stuffers for 2023

Best Cigar Stocking Stuffers for 2023 It happens this way each year. One minute, you’re sit...

Cigar of the Week 11/30/23 – StillWell Star Limited Edition Holiday Y2023

StillWell Star Limited Edition Holiday Y2023 Cigars The warm and sweet aromas of pipe tobacco mig...

The Dissim Slim Torch Lighter

What happens when you combine quality, convenience, and affordability? Well, I suppose there coul...