Law
Cigar tax cap
TOBACCO TAXES – Amends existing law to provide for a tobacco tax cap of fifty cents per cigar.

RS30666 / H0330

This legislation, in making amendments to Sections 63-2552 and 63-2552A, Idaho code, along with removing obsolete language and making technical corrections, will make the retail sale of cigars in Idaho more competitive with neighboring states, and the internet. All tobacco products in Idaho are taxed on the wholesale sales price at 35%, with an additional 5% tax. All tobacco products, excluding cigars, will continue being subject to this 40% tax on the wholesale price, with cigars being capped at a tax of 0.50 cents per cigar.

States have fluctuated in how they levy tobacco taxes, but from various studies and the effects realized by states enacting similar caps for cigars, the net effect has increased the sale of cigars, especially by the box, resulting in more excise and sales tax revenue.

Bill Events
Date Description
03/16 Introduced, read first time, referred to JRA for Printing
Reported Printed and Referred to Revenue & Taxation
03/17 Reported out of Committee with Do Pass Recommendation, Filed for Second Reading
03/20 Read second time; Filed for Third Reading
Rules Suspended: Ayes 69 Nays 0 Abs/Excd 1, read in full as required – PASSED - 60-10-0
AYES – Alfieri, Allgood, Andrus, Barbieri, Berch, Blanksma, Boyle, Bundy, Cannon, Cheatum, Clow, Cornilles, Crane(12), Crane(13), Dixon(1), Dixon(24), Durrant, Ehardt, Ehlers, Furniss, Gallagher, Garner, Handy, Hawkins, Healey, Hill, Holtzclaw, Horman, Kingsley, Lambert, Lanting, Manwaring, McCann, Mendive, Mickelsen, Miller, Mitchell, Monks, Nelsen, Palmer, Petzke, Pickett, Price, Raybould, Raymond, Redman, Roberts, Sauter, Scott, Shepherd, Skaug, Tanner, Vander Woude, Weber, Wheeler, Wisniewski, Wroten, Yamamoto, Young, Mr. Speaker
NAYS – Burns, Chew, Erickson, Galaviz, Gannon, Green, Mathias, Nash, Necochea, Rubel
Absent – None
Floor Sponsor - Redman
Title apvd - to Senate
03/21 Received from the House passed; filed for first reading
Introduced, read first time; referred to: State Affairs
03/22 Reported out of Committee with Do Pass Recommendation; Filed for second reading
03/23 Read second time; filed for Third Reading
03/28 Read third time in full – PASSED - 25-8-2
AYES – Adams, Anthon, Bernt, Bjerke, Carlson, Den Hartog, Foreman, Hart, Hartgen, Herndon, Just, Lakey, Lenney, Nichols, Okuniewicz, Rabe, Ruchti, Schroeder, Taylor, Toews, Trakel, Ward-Engelking, Winder, Wintrow, Zuiderveld
NAYS – Burtenshaw, Cook, Grow, Lee, Lent, Ricks, Semmelroth, VanOrden
Absent and excused – Guthrie, Harris
Floor Sponsor - Bernt
Title apvd - to House
03/29 Returned from Senate Passed; to JRA for Enrolling
Reported Enrolled; Signed by Speaker; Transmitted to Senate
Received from the House enrolled/signed by Speaker
Signed by President; returned to House
03/30 Returned Signed by the President; Ordered Transmitted to Governor
Delivered to Governor at 10:35 a.m. on March 30, 2023
04/06 Reported Signed by Governor on April 4, 2023
Session Law Chapter 291
Effective: 07/01/2023
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