STATEMENT OF PURPOSE
RS30666 / H0330
This legislation, in making amendments to Sections 63-2552 and 63-2552A, Idaho code, along with removing
obsolete language and making technical corrections, will make the retail sale of cigars in Idaho more
competitive with neighboring states, and the internet. All tobacco products in Idaho are taxed on the wholesale
sales price at 35%, with an additional 5% tax. All tobacco products, excluding cigars, will continue being
subject to this 40% tax on the wholesale price, with cigars being capped at a tax of 0.50 cents per cigar.
FISCAL NOTE
States have fluctuated in how they levy tobacco taxes, but from various studies and the effects realized by states
enacting similar caps for cigars, the net effect has increased the sale of cigars, especially by the box, resulting
in more excise and sales tax revenue.
Contact:
Representative Jordan Redman
(208) 332-1000
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 03/16/2023, 9:59 AM


Statutes affected:
Bill Text: 63-2552, 63-2552A