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Philadelphia to Erect Cigar Tax Statue At Independence Hall

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Okay, so the city of Philadelphia isn’t really going to erect a Cigar Tax Form Statue next to Independence Hall,  but at the rate they are going they might as well. The list of additional tobacco taxes currently being proposed in the city is substantial. The taxes are focused on Cigars and other types of Tobacco and even non-tobacco products such as E-Cigs.

Councilwoman Blondell Reynolds Brown of Philadelphia has proposed the following:

1. Tax of 36 cents per cigar.

2. E-cigarettes would be taxed at $2 per device

3. E-liquid taxed at 50 cents per milliliter

4. Rolling papers would be taxed at 50 cents per pack

5. Tobacco products, such as pipe tobacco, taxed at 50 cents per ounce.

6. This is on top of the the $2 per pack cigarette tax went into effect 3 weeks ago.

Pennsylvania is one of few states without any state taxes on premium cigars and Philadelphia is the largest city in the state.

Philadelphia’s tax authority has no jurisdiction outside the city limits.  It’s predicted that many of these cigar and tobacco shops will simply move down the road a few blocks and avoid all the taxes, while at the same time denying the city of Philadelphia both the tobacco tax and now as punitive damage, the payroll taxes from those jobs exiting the city.

It’s very possible that raising taxes to increase revenue might lead to a decrease in real revenue when the loss of jobs and payroll taxes are factored in.

Perhaps Councilwoman Blondell Reynolds Brown should read up on what happened to New York State when they raised the Tobacco taxes?