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Ohio Taxes going up!

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I got this from CI today......


Dear Ohio Customer:

While we continually strive to keep the price of premium cigar products as low as possible, legislators sometimes take action that runs counter to the interests of constituents like you. This is one of those times. Effective October 16, 2019, the State of Ohio will be imposing an Excise Tax on all tobacco products delivered to Ohio customers. See Ohio 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 sold:
  • Most Premium cigars (and all pipe tobacco) will be taxed at 17% of the wholesale price, which would equate to an average retail price increase of 8-11% with a maximum of fifty two cents ($.52) per premium cigar.
  • Most little cigars with a filter or tip will be taxed at 37% of the wholesale price, which would equate to an average retail price increase of 25-30%
For more details on the Ohio Excise Tax, please consult our website’s shipping policy or review the law here.

Finally, if you have any open orders, held orders, or backorders, please contact us immediately so that we may assist you in modifying your order for shipment prior to the October 16 effective date. Please note that backorders, held orders, auto ships, and club orders shipped after the effective date will be subject to the Ohio Excise Tax.
 

Boudie

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I'm willing to bet the excise tax issue is similar to the sales tax that on-line retailers now need to collect. The tax has always been there but the out of state resellers just didn't bother to pay or collect it. The customer was to self report and pay the tax.

Every year my state asks me to self report tobacco taxes, very similar to the rates in Ohio, that etail did not collect. I'm sure it's just a matter of time before etailers will be required to collect these excise/tobacco taxes up front.

I'd be curious to see if duties on imported cigars are less then combined state excise and sales taxes. Can't imagine the states having authority to make companies located out of the country collect local taxes.
 

Cigary43

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The Gov't is always going to find a way to tax anything.....esp sin tax items where they know people are going to indulge in it....guaranteed revenue stream. The trick is to find Vendors who will sell you what you want at a good price....a good excuse to travel to Florida and other states with less taxation and bypass the whole corrupt system of how we're taxed.
 

CigarGavin

tatuado fumador de puros
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The Gov't is always going to find a way to tax anything.....esp sin tax items where they know people are going to indulge in it....guaranteed revenue stream. The trick is to find Vendors who will sell you what you want at a good price....a good excuse to travel to Florida and other states with less taxation and bypass the whole corrupt system of how we're taxed.
Sucks for the local shops but I’m very much guilty of this.... I buy maybe 20-60 sticks a year local, and due to at least 2 tax changes in the last 7 years I’ve changed the way I buy online.


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