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· Cigars
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Under the new tax rates, little cigars and large cigars are taxed differently, which apparently has given rise to some major changes in cigar production.
Jump to full article: Tampa Bay (FL) Online (TBO.com), 2009-11-03
Author: MICHAEL SASSO * The Tampa Tribune
Intro: Last spring, the cigar industry fretted that the government might tax so-called "little cigars" into oblivion.
Several months later, though, it appears the makers of cigarette-shaped little cigars have found a way to escape the high taxes. The cigar makers have added more weight to their cigars, reclassified them as large cigars and now are subject to a lower tax rate, said Norman Sharp, president of the Cigar Association of America.
Last spring, the cigar industry rallied against a higher tax rate implemented to benefit the State Children's Health Insurance Program, or SCHIP. One Tampa cigar factory, Hav-A-Tampa, blamed SCHIP for a steep drop in sales, and it ceased its Tampa operations over the summer. Hav-A-Tampa's parent, Altadis USA, moved the Tampa plant's operations to Puerto Rico.
Little cigars may not be as iconic as fat stogies, but hundreds of millions are produced every year. They look like cigarettes and come 20 to a pack. Some popular brands include Cheyenne and Dutch Treats. . . .
Sharp, the cigar association president, said it appears cigar makers changed their production techniques to factor in the SCHIP tax.
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