Bill > SB1505

This bill establishes a new definition for "premium cigars" and introduces specific tax regulations for these tobacco products in Hawaii. The bill defines a premium cigar as a handmade or hand-rolled smoking product with specific characteristics, including being wrapped in whole tobacco leaf, containing at least 50% long filler tobacco, having no filter or non-tobacco tip, and weighing more than six pounds per thousand units. It also adds a definition for "characterizing flavor," which refers to distinguishable tastes or aromas like candy, fruit, or alcohol. The legislation aims to address competitive disadvantages faced by local premium cigar sellers by replacing the current percentage-based tax with a flat 50-cent excise tax per premium cigar, effective January 1, 2026. Additionally, the bill excludes premium cigars from the existing 70% wholesale price tax on tobacco products, which the legislature believes will help local retailers compete more effectively with mainland and online sellers. The bill is designed to support the local premium cigar industry, potentially increasing in-state sales and tax revenue by making these products more competitively priced.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1505&year=2026