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As you may know, certain states have recently begun to impose excise taxes on tobacco products sold by online retailers. Smokey’s Lifestyle Cigars collects excise taxes on your purchases as required by law. Please note that such excise taxes are in addition to applicable sales or use taxes, if any.

Colorado

Effective July 1, 2024, the State of Colorado is imposing an excise tax on all tobacco products sold to Colorado customers. Colorado’s excise tax rate will be 56% of the “manufacturer’s list price” for all tobacco products. Further excise tax increases are scheduled through 2027, when the rate will reach 62%. For more details on the Colorado excise tax, please review here.

Indiana

Effective July 1, 2023, the State of Indiana is imposing an excise tax on all tobacco products sold to Indiana customers. Cigars and pipe tobacco will be taxed at 24% of the wholesale purchase price. For more details on the Indiana excise tax, please review here.

Maine

Effective January 1, 2024, the State of Maine is imposing an excise tax on all tobacco products sold to Maine customers. Maine’s excise tax rate will be 43% of the “cost price” for all tobacco products. For more details on the Maine excise tax, please review here.

Maryland

Effective October 1, 2019, the State of Maryland will be imposing an Excise Tax on all tobacco products sold by online retailers to Maryland customers. See Maryland House Bill 1301. Please note that this excise tax is in addition to the Maryland sales/use tax already imposed on tobacco products sold to Maryland customers.

The Maryland Excise Tax rate will differ depending on the type of tobacco product sold:

• Premium cigars will be taxed at 15% of the wholesale price.
• Pipe tobacco will be taxed at 30% of the wholesale price.

For more details on the Maryland Excise Tax, review the law here.

Michigan 

Effective January 1, 2022, the State of Michigan is imposing an excise tax on all cigars sold to Michigan customers. Cigars are taxed at 32% of the wholesale price, with a maximum excise tax of fifty cents ($.50) per cigar.

For more details on the Michigan excise tax, please review here.

North Carolina 

Effective July 1, 2022, the State of North Carolina is imposing an excise tax on all cigars and pipe tobacco sold to North Carolina customers. Cigars are taxed at 12.80% of the wholesale price, with a maximum excise tax of thirty cents ($.30) per cigar. Pipe Tobacco is taxed at 12.80% of the wholesale price.

For more details on the North Carolina excise tax, please review here. 

Ohio

Effective October 16, 2019, the State of Ohio will be imposing an Excise Tax on all tobacco products delivered to Ohio customers. See Ohio Code 5743.62 Please note that this excise tax is in addition to the Ohio use tax already imposed on tobacco products delivered to Ohio customers.

The Ohio Excise Tax rate will differ depending on the type of tobacco product purchased:

• Most premium cigars (and all pipe tobacco) will be taxed at 17% of the wholesale price, with a maximum excise tax of sixty-four cents ($.64) per premium cigar.
• Most little cigars with a filter or tip will be taxed at 37% of the wholesale price.

For more details on the Ohio Excise Tax, review the law here. 

Pennsylvania

The Commonwealth of Pennsylvania imposes an excise tax on “small cigars” shipped to customers in Pennsylvania. Specifically, small cigars weighing 4lb per 1000 or less, not in carton packs, and not containing 20 to 25 sticks per pack are taxed at $0.13 per cigar. (Please note, we cannot ship to Pennsylvania customers any small cigars weighing 4lb per 1000 or less packed in cartons that contain 20 to 25 sticks per pack).

Loose or pipe tobacco is taxed at 55 cents ($0.55) per ounce, with a minimum excise tax of 66 cents ($0.66) per package.

Rather than pass the entire tax on to our customers, we have decided to charge only 30 cents ($0.30) per ounce. As a courtesy to our customers, Smokey’s Lifestyle Cigars will pay the remaining 25 cents ($0.25) per ounce excise tax imposed by Pennsylvania.

South Dakota

Effective January 1, 2022, the State of South Dakota is imposing an excise tax of 32% of the wholesale price on all cigars shipped to customers in South Dakota. SD continues to prohibit the shipping of all other tobacco products.

For more details on the South Dakota excise tax, please review here.

Virginia

Effective July 1, 2022, the Commonwealth of Virginia is imposing an excise tax on all retail sales of cigars and pipe tobacco to Virginia customers. Cigars are taxed at 20% of the wholesale price, while pipe tobacco is taxed at 10% of the wholesale price.

For more details on the Virginia excise tax, please review here.

Wisconsin 

Effective January 1, 2025, the State of Wisconsin is imposing an excise tax on all cigars and pipe tobacco sold to Wisconsin customers. The Act imposes an excise tax on cigars and pipe tobacco of 71% of the “actual cost” to the distributor or remote retail seller, not to exceed 50 cents for each cigar. “Actual cost” is defined in sec. 139.75(1d), Wis. Stats., as the total price charged by the manufacturer (including, fees, duties, federal excise taxes, marketing costs, and transportation costs), and the total price cannot be reduced by the value or cost of discounts.

For more details on the Wisconsin excise tax, please review here.