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Maryland Raises Taxes on Tobacco

  • 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.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Will Frei
Avalara Author Will Frei
Will Frei covers sales tax news including best practices, legislation and sales tax technology. He is the Social Media Manager at Avalara.