Maryland
Effective October 1, 2019, the State of Maryland will be imposing an Excise Tax on all tobacco products sold by online retailers to Maryland customers. See Maryland House Bill 1301. Please note that this excise tax is in addition to the Maryland sales/use tax already imposed on tobacco products sold to Maryland customers.
The Maryland Excise Tax rate will differ depending on the type of tobacco product sold:
- Premium cigars will be taxed at 15% of the wholesale price, which would equate to an average retail price increase of 7-9%.
- Pipe tobacco will be taxed at 30% of the wholesale price, which would equate to an average retail price increase of 15-20%.
For more details on the Maryland Excise Tax, review the law here.
Ohio
Effective October 16, 2019, the State of Ohio will be imposing an Excise Tax on all tobacco products delivered to Ohio customers. See Ohio Code 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 purchased:
- 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-three cents ($.53) 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, review the law here.
Pennsylvania
The Commonwealth of Pennsylvania imposes an Excise Tax on “small cigars” shipped to customers based in Pennsylvania. Specifically, small cigars weighing 4lb per 1000 or less, not in carton packs, and not containing 20 to 25 sticks per pack will be taxed at $0.13 per cigar.
Please note, we cannot ship to Pennsylvania customers any small cigars weighing 4lb per 1000 or less packed in cartons that contain 20 to 25 sticks per pack.
