Utah Keeps Sky High Tobacco Tax
The bill we reported on last week was amended so that it will not take effect until 2016.
Zero tax break for Utah, HB358 died on a 35-38 vote about 2 hours ago. It would have kept the 86 percent tax, but capped it at no more than 50 cents a cigar. Rather individuals that enjoy Cigars will have to pay the 86% tax rate until 2016, where it no doubt will go though another mess in the state capitol ending with another disaster for their state coffers.
“We are losing a significant amount of tax revenue to neighboring states and internet sales” by smokers trying to escape the sizable tax on high-end cigars, said Rep. Brian Greene, R-Pleasant Grove.
In reality no one can blame the good citizens of Utah, 86% cigar taxes (on top of all the other types of taxes) is roughly doubling the overall cost of cigars. No wonder they flock online or travel outside the state to purchase high quality hand made cigars. A tax rate like that would make any sane individual do anything in their power to legally avoid a doubling of a product cost in just taxes alone. The Utah tax code will continue to force their citizens to pay $2 dollars for every $1 dollar in product until 2016.