For the third time in the last three years, Republican Nebraska State Senator Mike Gloor of Grand Island is seeking a tobacco tax increase that would raise the cigar tax 55%.
The Bill, LB1013 would raise the tax on cigars and other tobacco products (OTP) from 20% of the wholesale cost to 31%. The change would raise a cigar that has a MSRP of $10.00 that currently costs $11.00 to $11.55.
The money that is raised would be approximately $120 million dollars according to the Senator who says the money would be used primarily to reduce property taxes.
The last two years the bill hasn’t made it out of the Legislative Revenue Committee however, Gloor is now the chairman of that committee which increases its chances of moving through.
