Delaware House Committee Advances Premium Cigar Tax Reduction

Dover, Delaware, April 14, 2022 — Yesterday the Delaware House Revenue & Finance Committee voted to advance SB 131 by a vote of 10-2 with one abstention which will now head to the House Appropriations Committee before reaching the Assembly floor. The legislation championed by State Senator Laura Sturgeon has already cleared the Senate and would lower “the tax rate for premium cigars from 30% to 15% of the wholesale price so that Delaware’s tax rate is consistent with the tax rates for premium cigars in surrounding states.”

PCA’s Deputy Executive Director Joshua Habursky testified before the committee in support of the bill alongside representatives from the retail and consumer community organized by the Delaware Independent Retail Stores Association. “This is a unique opportunity to address a source of assistance for small businesses and their patrons that are based in Delaware. S.B 131 is a pro small business bill that the Premium Cigar Association strongly endorses.” Habursky said in his remarks. 

Active industry supporter Dr. Steve Zengel President of Los Caidos also spoke to the committee about the difficulty of a 30% rate in both New Jersey and Delaware. Representatives from the Campaign for Tobacco Free Kids, American Lung Association, and American Heart Association spoke in opposition to the bill. The PCA would like to commend the leadership of Pat Singh (Cigar Sessions) for his leadership in working to advance this bill and the DRSA’s state lobbying team. PCA encourages Delaware based premium cigar & pipe retailers to get involved in support their state association and the efforts to advance this important legislation.