Taxes on cigars, please explain

[strife]

I am so confused as to how this works. I know each state has different percentages and that there are various taxes but can someone help break this down for me?

 

[sportsmedjosh]

Off topic, I thought this thread said Texas on Cigars. I was going to say Texas approves!

 

[BrandonJ]

http://www.taxadmin.org/fta/rate/otp.html

That is a pretty good breakdown on the individual state rates.

 

[WhiteLightning]

NY is now 46% of the wholesale price, I believe. Then you still have to add sales tax. Damn it's expensive here. :bigeyes: I'm moving.

 

[stogieman62]

Basically here's how it works:

A cigar is rolled in random country
It's imported into the US by manufacturer or distributor
Manufacturer or Distributor pays $.40 per stick to federal government
They sell cigars to retailer for wholesale price
Within in 1 month of receiving said cigars, retailer must pay the state tax rate to state governement
Cigar is sold, adding sales tax.

For example, a cigar that wholesales for $5 in New York, will actually be $7.30, and will retail in the $14-$15 dollar range.

 

[strife]

Basically here's how it works:

A cigar is rolled in random country
It's imported into the US by manufacturer or distributor
Manufacturer or Distributor pays $.40 per stick to federal government
They sell cigars to retailer for wholesale price
Within in 1 month of receiving said cigars, retailer must pay the state tax rate to state governement
Cigar is sold, adding sales tax.

For example, a cigar that wholesales for $5 in New York, will actually be $7.30, and will retail in the $14-$15 dollar range.

Thanks Luke, nice breakdown.