Maryland Increases Tobacco Taxes

The governor signed into law tax hikes on cigars and smokeless tobacco.

May 23, 2012

ANNAPOLIS, Md. - Maryland??s tax on cigars and smokeless tobacco will soon be higher after Gov. Martin O??Malley signed a bill into law raising taxes on those products, the Washington Times reports. This marks the first time non-cigarette tobacco products have had a tax increase since 1999.

State health officials pushed for the hike, citing increased use among minors of cigars and smokeless tobacco. Starting July 1, smokeless tobacco products, including chewing tobacco and snuff, will be taxed at 30%, while small cigars or cigarillos will be taxed at 70%. Premium cigars taxes will stay steady at 15%. The tax hikes will bring in $5 million annually.

Health lobbyist Vincent DeMarco, who spearheaded the tax hike, is now setting his sights on jacking Maryland??s cigarette tax from $2 per pack to $3 per pack. However, many Republicans and some Democrats are against such an idea.

Del. Neil Parrott has received numerous complaints from retailers in Western Maryland, who point to tax hikes as driving away customers to Pennsylvania, Virginia and West Virginia to purchase tobacco products. "It??s going to hurt their bottom line to a great extent," he said. "I think what it really amounts to is that [state leaders] want to tax everything as much as they can."

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