When ever the government runs out of money, taxing tobacco seems to be the answer. Having been out of town last weekend I missed the release of the budget report issued by Michigan’s, Canadian born, Governess Jennifer Granholm. Among Granholm’s many “revenue” increasing measures is a plan to double the tax on “other tobacco products” i.e. cigars from 32% to 64%. Michigan saw a 75 cent per pack tax increase in 2004 on cigarettes.

I saw my local tobacconist today and unsurprisingly they were extremely upset at the proposal. They understand completely that smokers in the Metro Detroit Area will go elsewhere to buy cigars. As we are the minority in the country the government feels justified in raising taxes without fear of an uproar from its citizens. We are losing the right to smoke in states every month and taxes imposed by our officials at every level of government. I am truly sick of watching our civil liberties thrown under the rug in the name of safety and so called sin taxes increasing bi-annually. When can I have my country back?

Granholm’s budget
http://www.tv7-4.com/Global/story.asp?S=6059164&nav=menu129_2

You think that is bad in Alberta we have a 143% tax on cigars the only saving grace if you can call it that is we top out at $ 8.00 per stick. In other parts of Canada there is no topping out, it is 143 % regardless.

quote:

Originally posted by Thumper:
Ywe top out at $ 8.00 per stick.

what do you mean you top up at 8 $ a stick ??? what kind of sticks are you talking about ?? definitely not hanrolled long fillers (and specially not cubans) at that price....

coz if this is the case, I'm moving to Alberta

i think thumper means the tax tops out a $8.00 per stick, not the total price.

The Michigan Senate budget commitee just rejected the gov's proposal. E-mail your legislators and see if they'll strip out the cigar portion of the tax hike.

Others states that went for high cigar taxes to raise "little cigar" prices (RI, WA, OR), instituted a 50-cent tax cap on large handmades.

Michigan might be able to do that.

quote:

Originally posted by Thumper:
You think that is bad in Alberta we have a 143% tax on cigars the only saving grace if you can call it that is we top out at $ 8.00 per stick. In other parts of Canada there is no topping out, it is 143 % regardless.

I live in Nova Scotia, and the cigar market is not very robust. We get absolutely gauged in cigar retail, and there is no limit per stick. I have seen various CC brands like Monte #2 and PSD4 retail for as much as $45 a stick. Luckily the shop I go to has prices in the same range as most of the retailers in larger Canadian urban areas but before they opened there was little choice

I went to my local shop to buy some maduro, and I was chatting with the owner who was kind of upset of a 85% tax on cigars here in Quebec.

Is it just me or should we all be upset when the tax on an item is almost equal to the item itself?

"The power to tax is the power to destroy"

Justice John Marshall (1819)

quote:

Originally posted by Canada Joe:

I live in Nova Scotia, and the cigar market is not very robust. We get absolutely gauged in cigar retail, and there is no limit per stick. I have seen various CC brands like Monte #2 and PSD4 retail for as much as $45 a stick. Luckily the shop I go to has prices in the same range as most of the retailers in larger Canadian urban areas but before they opened there was little choice

If I remember correctly, Havana House has a subdistributor in eastern canada, so the prices are not only a result of taxes, but of the extra middle man added. Not that I'm trying to defend the taxes, that is.

I could be wrong though.

quote:

Originally posted by kwijibo:

quote:

Originally posted by Canada Joe:

I live in Nova Scotia, and the cigar market is not very robust. We get absolutely gauged in cigar retail, and there is no limit per stick. I have seen various CC brands like Monte #2 and PSD4 retail for as much as $45 a stick. Luckily the shop I go to has prices in the same range as most of the retailers in larger Canadian urban areas but before they opened there was little choice

If I remember correctly, Havana House has a subdistributor in eastern canada, so the prices are not only a result of taxes, but of the extra middle man added. Not that I'm trying to defend the taxes, that is.

I could be wrong though.

You may be right. I think another problem was lack of competition for the longest time. There is a great cigar shop on the Halifax Waterfront now that I use, and they seem to have reasonable prices.

Here in the U.S. the tax-man is also out of control, and with the ever increasing socialist agenda, soda-pop inevitably will be next.

In California we pay a combined 55% tax on cigars. I paid $40 + 8% state for an ESG last Saturday night (Rancho Mirage)! Other dealers sell at $32.50 and have to drop your trousers for a Zino Crown Series at about $45, with Davidoff 100 Anni’s and Padron 160’s at ESG prices. We only beat back the proposed tax increase last November by a few percentage points. This would have increased it to 135% from the current 47%, not including 8% state!

Fortunately I occasionally provide service work for one local dealer where I trade for store credit. Better yet my other local dealer has legit Arizona shipping (no 47%), thus where my boxes are ordered. Still I try to patronize the local dealers on a weekly basis.

I paid 34% of net income just in Fed / state last year. Add your property tax, gasoline (about 58¢ per gallon x 35-40k driven here, not including spouse), your taxes on food, water, Internet, Cable TV, Telephones, etc. You get the picture, there is no end to your tax bill. Then turn on your boob and listen to the Al-Bore’s of the world plan for a mileage tax that will hammer anyone who travels for a living right out of business.

If taxes were not out of control local patrons would not be shopping at bestcigarprices, cigarbid, or others, and thus revenues would increase. For me, 3 boxes a month at $225 - $700 in-state prices, not including in-store singles that can add several Benjamins to the monthly credit statement, which in turn only adds up to a significant tax increase that has greatly surpassed criminal levels long ago.

If everyone bought cigars in-state the propensity for bureaucrats to enact additional taxes would be scheduled as S.O.P. If local dealers don’t understand this equation, or are without net-sales, or other in-store merchandising, they certainly are destined for extinction courtesy of Uncle Sam.

To Canada Joe,

I was in Halifax back in November with the Navy. I had no idea how expensive cigars were there. I was dumbfounded. I had planned on bringing a few home but $36 Canadian for what I buy for $6 American changed my plans. Of course what I buy here are not Cuban, never the less, to rich for me. Here in Virginia I think the tabacco tax is 6%. I consider myself very fortunate.

I did enjoy a few hours in Toms Little Havanna Cafe. It was very amusing to me how everyone sat around waiting for 5:00pm with smokes and lighters on the table. The lights dim, the candles get lit, and everyone fires up. Great place to relax.

What's so magic about 5 p.m.?

And I'd expect soon the province will go smokeless, like most of the rest of the country.

5pm was the earliest you could start smoking in bars in Halifax, but the city introduced the most extensive anti-smoking rules in the country last December. No it's no smoking anywehre indoors, anytime.

Tom's Little Havana was my favourite place in the city for a long time, but no more. I try and go as much as I can to do what I can to keep them open. Back in the day I could walk in, light up a cigar, and play cribbage or backgammon with some of the old folks or with friends for hours. Sometimes we'd sit and drink for hours over a some smokes. It's really disappointing to not be able to go in there and enjoy a smoke in a great old building.

Sorry to hear about that. I don't understand a law that goes that far. I wonder how much longer we have in America before we are under such restrictions. Hopefully not in my lifetime.

I suppose this will pretty much put taboacco shops in Halifax out of business. I'm glad I was able to enjoy Toms if only for a couple of nights.

Not sure about cigar shops going out of business here, but Ic ould see the cigar bars failing now. The city has the population (375,000) to sustain a few good shops, and enough of a tourist industry to augment any shortcomings from the local market, but why a business that caters exclusively to a niche market like cigar smokers should not be allowed to work within the law is beyond me.

Isn't some of this "Province specific?" I was in Montreal in late Fall 06, and there were still a few cigar bars operating.

One specifically, the trendy and large cigar bar called "Stogies" on Crescent just below the hotel I was staying on Sherbrooke, was doing a lot of business!

Stogies is a great place to smoke a cigar, although rather expensive. Best to bring your own cigar and just pay for the drink(s). And there was no 5:00pm "start" time.

So are there these types of cigar bars in major cities of other Provinces? How about Toronto, Ottawa, Quebec City, Vancouver, Calgary?

(I am just curious...as I love to spend time in Canada, although it usually ends up being in Quebee.)

In some areas it is provincial, in other is it municipal. here is a link to the curren tbans in effect in Canada:

http://www.hc-sc.gc.ca/hl-vs/tobac-tabac/res/news-nouve...iction-public_e.html

Sorry, that link is a little out of date, but it is still correct.