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Posted

From cigarcyclopedia article yesterday

http://www.cigarcyclopedia.com/webapp/cont...ew/1421/27/1/1/

Florida smokers: are you ready to pay taxes on the cigars you already own?

A largely unnoticed, but especially insidious aspect of the Florida Senate Bill 1840, which would impose substantial new taxes on cigars as well as cigarettes, is a “floor tax” which would be imposed not only on wholesalers and retailers, but also on consumers! Section 7(3) of the bill states:

A surcharge is imposed upon the use or storage by consumers of tobacco products in this state and upon such consumers at the rate of $1 for each ounce, with a proportionate surcharge at the same rate on all fractions of an ounce thereof. The surcharge imposed by this subsection does not apply if the surcharge imposed by subsection (2) on such tobacco products has been paid. This surcharge does not apply to the use or storage of tobacco products in quantities of less than 1 pound in the possession of any one consumer.

The proposed tax rate – designed to raise up to $86 million and which would be effective on July 1 – is $1 an ounce. A standard Churchill-sized cigar weighs about 0.55 ounces, so it would be taxed at 55 cents each ($13.75 per box of 25); a trendy 60-ring by 6-inch Toro would bring an additional tax of 60-65 cents per cigar or perhaps $16.25 per box of 25! So for a smoker who owns 10 boxes of cigars, the personal tax on his existing home stock could be $150 to $200 depending on the total weight!

Of course, this tax – on top of the new Federal cigar tax rate of 40.26 cents each – would have to be paid by retailers and distributors. The bill was approved by the Senate’s Ways and Means Committee by a 16-1 vote on April 7.

Florida smokers are asked to contact their state senators and protest this unthinkable tax on cigars and on consumers. Ask for all cigar taxes to be removed from Senate Bill 1840; the contact list for the Florida Senate is here. (We incorrectly reported the proposed tax rate as $1 per pound yesterday; yesterday’s story has been updated to reflect the correct rate and fiscal impact. Our apologies for the error.)

Posted

As in the days of prohibition, there will always be those enterprising individuals who will take the initiative to find ways to circumvent

the system. :rolleyes:

Posted

There is no way they could tax your existing stash.

When the article says, "Of course, this tax – on top of the new Federal cigar tax rate of 40.26 cents each – would have to be paid by retailers and distributors." it must mean that the retailer would collect -- from you -- the floor tax for that particular purchase. So going forward your stash would be taxed and the price of the cigar goes up.

Posted

Obviously the taxation is wrong but I am going to skip to a tangent for a moment. This is obviously the states attempt to piggyback on the numerous seizures of frauds and fine smugglers that tend to traffic though the state. As usual with government by attempting to pursue the criminal element they indict the individual pursuing his liberty in the process.

Posted

Yeah... my vote is the politician's trying to weasel their way into more tax money to waste. Thankfully I import my cigars from um.... Antarctica!

:D And this one is for Uncle Sam's tax collectors: :rolleyes:

Posted
Obviously the taxation is wrong but I am going to skip to a tangent for a moment. This is obviously the states attempt to piggyback on the numerous seizures of frauds and fine smugglers that tend to traffic though the state. As usual with government by attempting to pursue the criminal element they indict the individual pursuing his liberty in the process.

That may be part of it, but I think this is an attempt to get more money from smokers who buy over the internet. The law states that the retailer will have to pay the new tax and pass it on to the consumer... nothing new there. But it also states that if the retailer didn't collect the tax, the consumer will be responsible. I suspect you will see Florida cracking down on reciprocal reporting from other states so that cigar and cigarette internet stores will have pressure put on them by their own states to report what was shipped to Florida and who it was shipped to. If it works there I'm sure it will spread to other states.

From what I can see, this is not part of SCHIP, since that has already been passed -- it is a new and separate tax being levied and collected by the state of Florida.

Posted

And how the hell would they know what you had at home. are we going to start seeing door to door raids by the ATF .

Slogans like they will have to pry my cigar from my dead clenched jaw will start popping up.

Bloody Politicians. :)

Posted

Desperate people have been known to render desperate deeds. :)

The Governor of Virginia recently signed a bill banning all smoking from restaurants in the Commonwealth unless those establishments have a separate room and HVAC system for the smoking section. A good friend who owns a cigar friendly pub worries the impact of such legislation will push him to the brink. It is also ironic that some cities in the Commonwealth already have a special tobacco tax while adjacent counties/towns do not. Which means that I can go to a B&M one mile from my house which is not in the city and do not have to pay the extra tax, whereas, at the B&M inside city limits I would.

It is complete lunacy.

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