PCA | March 23, 2023

PCA POSITION/STRATEGY
The Premium Cigar Association is actively working with state associations, retailers, and coalition partners to introduce and support tax cap legislation in the states. The goal of this state legislation is to reduce the tax burden on retailers and consumers, alike, and to create a robust marketplace to sell premium cigars. The association aims to support legislation that can provide relief to the most number of products sold by our retail members, and to use the available definitions of cigars, that can best suit the legislative climate in a given state. The “large cigar” tax definition encompasses the most number of products, but because of it’s inclusion of non-premium machine made and flavored cigars, the use of this definition is not acceptable in every state. To pursue tax relief in more challenging legislative environments, the association will utilize the definition of “premium cigars” used by the Judge Amit Mehta opinion in Cigar Association et al v. Food & Drug Administration. Tax caps for premium cigars are essential in promoting a robust brick and mortar marketplace, especially in states with challenging tobacco tax and regulatory environments.
Continue reading PCA Position Statement and Background on Tax Caps









