Pennsylvania is one of two states without a tax on the sale of cigars — the other being Florida — and Gov. Ed Rendell is again attempting to let the Sunshine State own the field with the assumption that it would have no impact on the Pa. economy, as Commonwealth Federation’s Nathan Benefield points out.
However, Pennsylvania’s near unique status has caused it to become the headquarters for a large number of online cigar and smokeless tobacco retailers — such as Famous Smoke Shop, Cigars International, and Holt’s —that do tens of millions of dollars in online business, which is subject to corporate tax, and who employee hundreds of Pennsylvanians who do pay income, property and sales taxes.
It should be obvious that these companies would not find it that hard to move to the land of orange trees.
Cigar International, a $90 million company with 150 employees, is one that would consider it according to its CEO Keith Meier.
It should be obvious that this would hurt the Pennsylvania economy.
But we are dealing with Democrats, however.
Florida does tax cigars: with the 7% sales tax. You are right that Florida doesn’t have a separate tax on cigars, like they do have on cigarettes, which have a separate tax plus the sales tax.