A bill to cap the excise tax on cigars at $0.50 per cigar has passed both chambers of the Idaho legislature and is now headed to the desk of Governor Brad Little. The bill, HB 300, was formally introduced on March 16, 2023, and passed with a large majority of votes.
HB 300 will cap the current excise tax on cigars in Idaho, which is 35 percent of the wholesale price. This tax is one of the higher in the country and has made cigars less affordable for Idaho smokers. The passage of HB 300 will make protect the state’s small businesses and will make cigars more affordable for adult smokers.
The Idaho legislature is currently wrapping up all other state business and is expected to adjourn on April 8, 2023. Governor Little has 10 days to sign HB 300 into law after it is delivered to his desk. If he does not sign the bill within 10 days, it will automatically become law.
The passage of HB 300 is a victory for cigar enthusiasts and the cigar industry in Idaho. The tax cap will help to protect the state’s cigar businesses. The Cigar Association of America (CAA) played an integral role in ensuring the passage of HB 300. CAA has worked for years to pass a cigar tax cap bill in Idaho, and we commend the Idaho legislature for passing this important bill. We urge Governor Little to sign it into law.
