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Bill > SB1162
VA SB1162
VA SB1162Tobacco products; caps statutory tax rate imposed on selling or distributing of cigars, etc.
summary
Introduced
01/07/2025
01/07/2025
In Committee
01/07/2025
01/07/2025
Crossed Over
Passed
Dead
02/22/2025
02/22/2025
Introduced Session
2025 Regular Session
Bill Summary
Tobacco products tax; cigars. Caps the statutory tax rate imposed on the selling or distributing of cigars by a distributor or remote retail seller at 20 percent of the manufacturer's sales price or 30 cents ($0.30) per cigar, whichever is lower. Under current law, the effective rate is 20 percent of the manufacturer's sales price due to language in the appropriation act, which doubles the statutory rate. The bill also directs the Department of Taxation to update its form TT-8, Virginia Tobacco Products Tax Return (OTP), to begin collecting data on the number of premium cigars sold in the Commonwealth as a distinct category from all other cigars. The bill directs the Department to update such form as soon as practicable and provide a report of the data so collected and estimated fiscal impacts of adopting a cap of 30 cents ($0.30) per cigar or another rate on the tobacco products tax imposed on premium cigars to the Chairmen of the House Committee on Finance and the Senate Committee on Finance and Appropriations no later than December 1, 2025.
AI Summary
This bill modifies the tobacco tax law in Virginia by establishing a new tax rate for cigars that is capped at either 20 percent of the manufacturer's sales price or 30 cents per cigar, whichever is lower. The bill requires the Department of Taxation to update its tax return form (TT-8) to specifically collect data on premium cigars, which are defined according to federal regulation 21 C.F.R. § 1114.3, as a separate category from other cigars. The department must collect this data to help estimate the potential fiscal impact of different tax rates on premium cigars. By December 1, 2025, the Department of Taxation must provide a report to the Chairmen of the House and Senate Finance Committees detailing the collected data and potential fiscal implications of the proposed cigar tax cap. This change aims to provide more clarity and potentially reduce the tax burden on cigar sales, while also gathering more detailed information about the premium cigar market in Virginia.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Left in Finance and Appropriations (on 02/05/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://lis.virginia.gov/bill-details/20251/SB1162 |
| Fiscal Note/Analysis - Impact statement from TAX (SB1162) | https://lis.blob.core.windows.net/files/1023021.PDF |
| BillText | https://lis.virginia.gov/bill-details/20251/SB1162/text/SB1162 |
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