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Cigar-tax cap fails after floor debate over fiscal impact and timing
Summary
House debated HB358, which would cap the tax on cigars at $0.50 per cigar (capping the current 86% wholesale tax at a 50-cent per-unit maximum). Sponsor argued the change would retain sales in-state and increase revenue; critics cited the bill's fiscal note and asked for more precise fiscal analysis. The bill failed on final vote, 36–38.
Representative Green presented House Bill 358 to cap the tax on cigars at $0.50 per unit while leaving the 86% wholesale rate in statute but imposing a per-unit ceiling for higher-priced premium cigars. Green said the cap aims to prevent loss of sales to neighboring states and Internet retailers and cited Wisconsin’s…
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