There are taxes on cigs in all states. But some have a "USER" tax. I.E. If you live in IL but go to IN to buy cuz they’re cheaper. You have to pay an additional tax to use the cigs in IL. Lots of people in IL getting hit with big taxes now on this cuz they bought on the internet and shipped to IL. Wondering if all states have this tax?
The USE tax has NOTHING to do with cigarettes. EVERY state with a sales tax has an equivalent use tax that applies to ALL items purchased out of state. It is just enforced more actively for cigarettes.
Feb 022010
Jan 292010
I’m a freelance writer interested in the rising price of sin taxes? The basic angle is that smoking cigarettes is not that much cheaper than smoking pot in some municipalities.
I can give you a link for the US but not for the countries of the world.
This is a link to a map of the US with the state taxes of each state. It also says how much the federal taxes are on cigarettes. At the bottom, it lists the areas that also have a city tax (for example, NYC residents have a federal tax of $1.01, a state tax of $2.75 and a city tax of $1.50)
http://www.tobaccofreekids.org/research/factsheets/pdf/0222.pdf
These taxes are only for pre-made cigarettes.
This is another great site that lists the tobacco taxes per state. It also includes taxes on loose roll your own tobacco. As you can see, the Federal tax increase last year was a 2,200% increase. The taxes on roll your own are now higher than the retail value of the products.
http://ryorevolution.com/ryo-tobacco-tax.html
There is currently a bill proposed in the House that would raise the taxes on pipe tobacco from $2.83 per pound up to $24.78 per pound (again, this would make the taxes higher than the retail value of most of the products).
http://www.govtrack.us/congress/bill.xpd?bill=h111-4439
If you click on "Full Text" you can read the bill. It’s a short read.
Nov 182009
I know that back on April 1st, the Cigarette and Tobacco taxes were substantially increased.
Since then I’ve heard around that there is pending legislation that there will be another tax increase during the Fall/Winter months of 2009, but can’t find any evidence of that.
Anybody know?
There no more pending Federal tobacco tax increases at present. Those take an act of Congress and Congress is busy with other issues right now.
State taxes could increase at any time and that is were most high tobacco taxes exist. (The tax on a pack of cigarettes in NYC is nearly $6.00 when all taxes are added in.)
Nov 042009
Its just like the minimum wage. There s a federal standard but each state have a different tax. Please help
There is no federal standard. ALL cigarette taxes are STATE taxes. You may as well ask why state income tax rates are different in each state. The only meaningful answer is: Because each state passes its own laws.
Oct 252009
California State raises its revenue by imposing various taxes such as estate tax, insurance tax, alcoholic beverage tax, gambling, motor vehicle tax and tobacco tax. In addition, the employees or the employers have to pay taxes to trust funds, to help disabled and unemployed employees.
Estate tax-This tax is the fifth largest source of the General Fund Tax and it was estimated as $937 million in 1999-00.In June 1982, this tax was established under Proposition 6. This eliminated the inheritance and the Gift tax law of the state. Estate tax is levied on the adjusted property value of an individual taxpayer, after his demise because the federal law permits a credit against the federal estate tax paid and the state rate is equal to the maximum federal credit allowed.
Insurance tax-This tax was implemented in 1911. This is the oldest tax in California. Insurance tax is charged on the premium sold by insurance companies and is charged on all the states insurance companies except on the license fees and the real estate taxes. This is the fourth largest source of General Fund revenue and it was raised by $1.3 billion in 1900-00, from 2000 companies.
Alcoholic Beverage Tax-Excise taxes are levied on the beverages sold by the manufacturers, on a per gallon basis. This tax is levied in addition to the federal excise tax. In addition to these two taxes, the retail establishment liquor owner pays an annual license fee. The tax rate differs, based on the type of beverage. The fund raised from this tax was estimated to be $274 million in 1999-00. Majority of this revenue is obtained from distilled beer and spirits.
Tax on Gambling related Activities-California State permits a state lottery, horse racing and bingo for charitable purposes.
. The state lottery was established under the Proposition 37, in November 1984. The California State Lottery Act sets the distribution of the lottery proceeds. Lottery revenue also funds a minor source for schools.
. Horse racing and the license fees are basically levied on the amounts that are raised during horse racing meets. This tax ranges from 0.4 to 2 percent and it depends on the type of wages, type of racing and also the placement of the wager. An estimated $35million was generated from these levies in 1999-00.
Motor tax- Motor tax is the main source of state special fund revenue, estimated to be around $8.4 billion of the special fund total.
Accounting to the largest share of motor taxes, the state fuel tax is mainly categorized into three types:
1. License Tax or Gas Tax-This tax is imposed on the fuel distributors, based on per gallon of fuel that is distributed. This tax levied contributes to the greatest share of fuel related tax revenue.
2. Used Fuel Tax- This is an excise tax which is levied on the used fuel. This is mainly imposed on alternative fuels such as compressed natural gas, ethanol and liquefied petroleum.
3. Diesel Fuel Tax-This tax is levied on the delivery and sale of diesel fuel and the record is generally collected from the distributors.
Tobacco tax-This tax is levied on cigarette distributors. The California State tobacco tax is currently $0.87 per pack.
Tax related to Employment-The disability insurance program is funded by the State Disability insurance company and it is levied on the employees and it is deducted from their payroll.
Kris Koonar
http://www.articlesbase.com/destinations-articles/other-state-taxes-in-california-114636.html