S.B. 84 lowers the tax rate for premium cigars from 30% to 20% of the wholesale price so that Delaware’s tax rate is consistent with the tax rates for premium cigars in surrounding states. The tax rate in Maryland is 15% and there is no tax on premium cigars in Pennsylvania. Under S.B. 84, a premium cigar means any roll for smoking that is all of the following:
- Made entirely of tobacco, including the wrapper, binder, and filler.
- Hand rolled.
- Contains no filter, tip, or any mouthpiece consisting of material other than tobacco, or any additional flavoring.
Help pass this important legislation; contact the Delaware Senate today to encourage them to pass S.B. 84!