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Mackinac Center for Public Policy
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2012 Senate Bill 1004: Cap cigar tax

Public Act 325 of 2012

  1. Introduced by Sen. Arlan Meekhof (R) on March 6, 2012, to cap the tobacco tax on cigars at 50 cents apiece, and mandate that specialty tobacconists must post a sign warning customers that they must pay all state taxes on cigars bought over the internet or through catalogs.
    • Referred to the Senate Finance Committee on March 6, 2012.
      • Reported in the Senate on June 7, 2012, with the recommendation that the bill pass.
    • Amendment offered in the Senate on June 13, 2012. The amendment passed by voice vote in the Senate on June 13, 2012.
  2. Passed 35 to 1 in the Senate on June 14, 2012.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the House on June 14, 2012.
    • Referred to the House Commerce Committee on June 14, 2012.
      • Reported in the House on July 18, 2012, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
    • Substitute offered in the House on September 27, 2012. The substitute failed by voice vote in the House on September 27, 2012.
    • Substitute offered by Rep. Rudy Hobbs (D) on September 27, 2012, to replace the previous version of the bill with one that revises details but does not change the substance as previously described. The substitute passed by voice vote in the House on September 27, 2012.
  4. Passed 86 to 22 in the House on September 27, 2012, to cap the tobacco tax on cigars at 50 cents apiece, and mandate that specialty tobacconists must post a sign warning customers that they must pay all state taxes on cigars bought over the internet or through catalogs.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the Senate on September 27, 2012.
  6. Passed 34 to 1 in the Senate on September 27, 2012, to concur with the House-passed version of the bill.
    Who Voted "Yes" and Who Voted "No"

  7. Signed by Gov. Rick Snyder on October 9, 2012.

Comments

Re: 2012 Senate Bill 1004 (Cap cigar tax )  by Robin R on April 29, 2012 

Please continue to support this bill until passage. It would bring revenue to the State of Michigan while supporting local businesses. Everyone will win!


1.) The current Michigan cigar tax is very high compared to other states or online cigar purchase options.


2.) As such, many Michigan cigar smokers purchase and ship from purveyors outside our state. Our state, too local tobacconists, lose money as Michigan's cigar tax rate positions us as uncompetitive. Simply, product may be purchased cheaper outside state lines, so sales migrate out.


3.) Further, few/no Michigan cigar purveyors bother expanding their business to online cigar sales as Michigan's cigar tax rate creates a competitive disadvantage.


4.) However, passage of this bill would lower the Michigan cigar tax; greatly increasing in-Michigan cigar purchases. Cigar purveyors could now realize the ROI of expanding their businesses to online sales. There even exists potential of broadening Michigan cigar sales to a national customer base with the addition of this newly competitive online status.


5.) With new, expanded (local, even national) interest in purchasing cigars from Michigan tobacconists, sales and the related tax would migrate in-state, to which, these Michigan cigar purveyors would capture increased taxes for the state. These goods will now be sold/shipped from Michigan.


 


 



2012 Senate Bill 1004 (Cap cigar tax )  by admin on April 29, 2012 
Introduced in the Senate on March 6, 2012

Click here to view bill details.