Maryland Raises Taxes on Tobacco
- Sales Tax News
- May 17, 2012 | Will Frei
The Maryland General Assembly passed a bill that raises the tax on certain tobacco products (SB 1302).
The bill doubles the tax on "other tobacco products" from 15% of the wholesale price to 30% of the wholesale price (see Example 1). Maryland law defines other tobacco products* as,
- " . . . (1) any cigar or roll for smoking, other than a cigarette, made in whole or in part of tobacco; or
- (2) any other tobacco or product made primarily from tobacco, other than a cigarette, that is intended for consumption by smoking or chewing snuff."
In addition, the bill raises tax on non-premium cigars from 15% of wholesale price to 70% of the wholesale price (see Example 2).
- Example 1: The wholesale price is $10. Tax will be $3.
- Example 2: The wholesale price is $10. Tax will be $7.
*Search under Business regulation, article 16.5-101.