More than a dozen lobbyists for retailers and tobacco companies argued Tuesday before state senators considering whether to seek an estimated $15 million or more in improved tax collections by changing how cigars are taxed.
The Department of Revenue testified before the Tax Collection Technology Subcommittee of the Senate Finance Committee that 7-23 percent of tobacco sold in the state is not taxed as required by law. That’s because cigars are usually sold separately, unlike cigarettes and chewing tobacco, which come in packages that carry a tax stamp.
