Please continue to support this bill until passage. It would bring revenue to the State of Michigan while supporting local businesses. Everyone will win!
1.) The current Michigan cigar tax is very high compared to other states or online cigar purchase options.
2.) As such, many Michigan cigar smokers purchase and ship from purveyors outside our state. Our state, too local tobacconists, lose money as Michigan's cigar tax rate positions us as uncompetitive. Simply, product may be purchased cheaper outside state lines, so sales migrate out.
3.) Further, few/no Michigan cigar purveyors bother expanding their business to online cigar sales as Michigan's cigar tax rate creates a competitive disadvantage.
4.) However, passage of this bill would lower the Michigan cigar tax; greatly increasing in-Michigan cigar purchases. Cigar purveyors could now realize the ROI of expanding their businesses to online sales. There even exists potential of broadening Michigan cigar sales to a national customer base with the addition of this newly competitive online status.
5.) With new, expanded (local, even national) interest in purchasing cigars from Michigan tobacconists, sales and the related tax would migrate in-state, to which, these Michigan cigar purveyors would capture increased taxes for the state. These goods will now be sold/shipped from Michigan.