Part of Governor Patrick's budget proposal reportedly includes expanding the reach of the sales tax to non-traditional tobacco products like smokeless tobacco or, as it is more commonly known, chew. The combined tax revenue from cigars and smokeless tobacco was $23.8 million in FY 2012 according to Department of Revenue projections. Here's a handy chart detailing the growth of tax revenue from cigars and chew:
- Taxes on cigars and chew were last raised in 2002.
- The tax is levied on the wholesale price that retailers pay to distributors.
- Massachusetts law considers cigarillos, or little cigars, to be cigarettes and taxes them as such.
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