Little Cigars Make News in Minnesota

While WI is fighting budget battles, Minnesota law makers are looking to change a loophole in their definition of "cigarette" in hopes to reach tax equity when it comes to cigarettes vs little cigars.


From an editoral in the Star Tribune:

...The per-pack difference is mainly because cigarettes are subject to a minimum price law in the state and are taxed much more than discount little cigars, which are wrongly classified as "other tobacco products.''

If you put a Marlboro 100 cigarette next to a strawberry-flavored Swisher Sweet little cigar, even hard-core smokers would be hard-pressed to tell the difference. Little cigars have the same size and shape as cigarettes. They have filters. They commonly come 20 to a package...


Wisconsin's laws are similar, requiring only 71% of the manufactures' retail price to be added to products called "cigars or cigarillos." Cigarettes in WI however, are taxed at $2.52/pack which is just over 100% of the manufactures' retail price.


If the state needs to raise some funds to help in this desparate budget crisis, taxing all tobacco products equally would be a great option.


http://www.startribune.com/opinion/editorials/116625028.html