MI Cigar tax to decrease [Archive] - Puff Cigar Discussion Forums

: MI Cigar tax to decrease

09-11-2012, 11:21 PM
So the owner of my preferred B&M is pretty plugged in to the Michigan politics around Cigars. He has told all of us around the store that there is currently a bill that is about to pass or has already passed that will limit the tax on any given cigar to $.50. This is in contrast to the uncapped straight 32% that we currently pay in this state. So a cigar that now costs $13.20 will cost $10.50 once the bill goes into effect.

There is apparently some controversy about when this will go into effect, it is either Oct 1 or Jan 1. Keep in mind that since there is no refund to the retailers for floor stock (and they pay taxes on the product once they receive them into inventory, not when they sell them) that prices may not immediately reflect these changes. My owner has said that prices will gradually step down as they sell off the cigars that they had already paid the higher taxes on.

Just thought some of you who had not heard about this might be interested. Let me know if you have any more questions.

09-11-2012, 11:27 PM
Well, if you need a quick "tax fix" next year, you can always come over to Illinois and pay 36%!

The chances of this happening here are slim to none, and slim is in prison......

09-11-2012, 11:31 PM
That's great news Chris! Hope this becomes a trend for some of the extremely high cigar tax states. One can only hope :)

09-12-2012, 03:21 PM
Best news I've heard all day, maybe even all month. I'd like nothing better then the ability to spend my money here at home.

09-12-2012, 06:38 PM
The chances of this happening here are slim to none, and slim is in prison......

...Along with the previous two Governors...

09-12-2012, 06:46 PM
Here's a link to the contents of the bill: 2012 Senate Bill 1004: Cap cigar tax - Michigan Votes (http://www.michiganvotes.org/2012-SB-1004) It sounds like the Legislature is trying to get Michigan into the Online Tobacco game.

09-12-2012, 07:37 PM
That's great news. The chances of California legislators reducing taxes are about the same as the chance of actually having a zombie apocalypse.

09-20-2012, 01:21 PM
Apaprently this now might go into effect Nov 1. I guess things didn't get done in time for an Oct 1 start and retailers want to have the lower prices for holiday buying season so Nov 1 is the likely start date of the lower tax. However we probably wont see a total decrease to the new prices as there is no refund for stock already on the floor so retailers will need to start to gradually step down prices to recoup the taxes they already paid.

09-20-2012, 01:49 PM
That would be a dream come true in NY. Luckily I love in Orange County so I'm able to cross into PA from time to time. I still try to support my local b&m whenever I can.

09-20-2012, 02:33 PM
That's pretty awesome! I wish Arkansas would consider something like that, but there's not even a snowball's chance....

09-20-2012, 02:40 PM
My dad is pretty plugged into these things as well, and he brought this up the other night.

He said that the shop where their club is, the owner has even come to the "regulars" and told them that the stock will be a little light for a while, because he is trying to hold out on buying big till this goes through.

Great news for us MI guys. Although, I buy almost exclusively off the interwebs, but this is good news none-the-less.

09-21-2012, 01:04 PM
The owner of my place is doing the same thing. His humidor full is over a million so that 300K he would lose on the tax if it's full when it goes through. So the inventory has been dwindling over the last couple months, and they are only taking orders of stuff they know will sell quickly (Liga, etc).

Apparently they found a bunch of new cigars they liked at the trade show and will be adding a bunch of new brands, but we have to wait until the tax drops.

This decrease in price I believe will make it no longer worth it for me to buy online at regular online prices. I may still save a few bucks but I would rather buy local if it's not a huge difference. However the crazy closeouts and cbid will still likely be a good bargain.