What could be more special-interest and smoke-filled-roomy than a special tax—and a tax cap!—for premium cigars.
Epitomizing elitism, Representative Chris Karr (R-11/Sioux Falls) writes House Bill 1231, a special favor for cigar smokers. First, it writes a definition of “premium cigar” into state law:
Rep. Chris Karr and his special interest
“Premium cigar,” a cigar that:
(a) Is hand-constructed;
(b) Is wrapped in one hundred percent leaf tobacco;
(c) Is bunched with one hundred percent tobacco filler;
(d) Has a one hundred percent leaf tobacco binder;
(e) Contains no filter, tip or nontobacco mouthpiece; and
(f) Weighs at least six pounds per one thousand count [2020 House Bill 1231, as amended in House Commerce and Energy, 2020.02.21]
Representative Karr originally wanted to exempt premium cigars from the 35% wholesale tax on tobacco products and simply impose a 50-cent-per-stogie tax on top of sales tax. At its Friday hearing, House Commerce and Energy amended that language to extend our wholesale tobacco tax to out-of-state vendors and to reword the tax exemption as a cap of fifty cents per premium cigar.
That’s a tax break. Consider: a cigar will hit the 50-cent cap if it costs more than $1.42 whoesale. Assume premium cigars have 100% markup, and that means a three-dollar cigar or better at retail will pay less tax than expected by the current 35% tax. And the fancy stogies Karr favors can easily run $25 to $40 a smoke.
HB 1231 is not only elitism but regressive taxation par excellence. The rich guys importing fat Havanas will pay the same tax for their pleasure as Joe Six-Puff treating himself to a two-dollar smoke.
Why are we paying these rubes a salary ?? They obviously do not have any important issues to consider.
Curt
2020-02-24 10:06
Presumably there is a fiscal note required, correct?
Loren
2020-02-24 10:27
Really? REALLY???? !@#%^&*
grudznick
2020-02-24 13:06
Young Mr. Karr is an inept “leader” in the legislatures and is but a puppet for the insanest of them all, Mr. Haugaard, but on this stogie law bill he has a good idea. grudznick applies the stamp of approval.
Porter Lansing
2020-02-24 13:42
Since golf balls aren’t really owned, they’re only leased until they’re ultimately lost, there should be a tax cap of one penny per unit sold.
Debbo
2020-02-24 17:08
SDGOP, GFYWYPC.
grudznick
2020-02-24 17:47
Ms. Geelsdottir, isn’t that a Billy Clinton move?
Scott
2020-02-24 19:30
Thank You Cory for bringing to light what happens in Pierre. There is so little news about the legislative session in our newspapers, something like this would never to reported.
What would be the motivation for proposing this legislation? Certainly this does not impact a lot of SD citizens as I see very few cigars being smoked. Even if Rep Carr does not have any personal involvement in premium cigars, it just makes it look like he is helping himself or people close to him.
No wonder SD legislators never get around to fixing real problems. IMO bills like this are introduced to take up time so that in the end there is no time to work on real issues like healthcare.
Porter Lansing
2020-02-24 19:43
Penis Envy much, Representative Chris Karr (R-11/Sioux Falls)? It’s common psychological data that shows that men with small penises talk and fantasize about big penises to distract from their lack of endowment. Big cigars, Chris? Cigars judged by their weight, Chris? Six descriptors of what a “Big Cigar” really is, Chris? You poor fella. Find a stripper bar in Ft. Pierre and relax. The girls won’t laugh at you … to your face, anyway. But we will. Heh heh Ho!
O, we can’t tax the wealthy for Social Security, because then they wouldn’t have as much money to buy premium cigars, and then the whole darned economy would collapse.
I’m for this bill!!! It’s purpose is to kill elitist Republicans.
My daughter tells me that Covid-19 deaths in China are mainly in the older smoker cohort. And who smokes more of these sea-gars than elitist Republicans. Isn’t this why Rush has lung cance? If he comes down with Covid-19, he’s gone in a flash of a matchstick, Praise the Lord! The more they smoke the faster they die. Good riddance, pass the bill with a veto proof majority and pass the cigar over to Rep. Karr. Bah-bye.
Debbo
2020-02-25 13:42
What Don said. 🤣🤣🤣🤣🤣
JP
2020-02-25 15:51
As you usually drill down into legislation better than this Corey, I’m a bit surprised at you.
The primary focus of the bill is to allow Cigars to be shipped into the state. SD is one of two states (us and Utah) that do not allow Cigars to be shipped to an individual.
To start allowing the shipment without creating tax parity between brick and mortar stores and online retailers would put local stores out of business. The tax cap is implemented in many states, including MN and IA as a way for businesses that pay property taxes, pay employees, and support local economy, to compete.
So no, this isn’t an elitist program, this simply catches us up with the other states. 36% of states treat premium cigars differently. 82% have lower taxes on premium cigars, and 96% allow shipment of cigars.
So, JP, you’re telling me that other states give tax breaks for this luxury item? Sounds like we’re just aping a small form of elitism already too prevalent in other states. The fact that everyone else does it doesn’t make it non-elitist.
Debbo
2020-02-25 17:41
So this is pretty much a nationwide rich old white guys law. Thank god we’re putting time and effort into caring for them while cutting off same for women, children and POC.
This kind of thing is exactly why voters are outraged and exactly how far out of touch the GOP/SDGOP and their most rabid and/or brainwashed supporters are.
Franklin Otis Carroll has written a good piece in SD Standard about outrage.
is.gd/lKcoZr
mike from iowa
2020-02-25 18:52
So no, this isn’t an elitist program, this simply catches us up with the other states.
Don’t mean to hijack thread, but other states pay workers much more, pay teachers much more and keep more of their graduates home and working in state, so more taxes are collected to provide more services for citizens.
Isn’t this the EXACT model for Social Security taxes? There is a cap so that not all the income of the mega-wealthy is taxed pool.
WTF?? Oh right, they’re on meth.
Why are we paying these rubes a salary ?? They obviously do not have any important issues to consider.
Presumably there is a fiscal note required, correct?
Really? REALLY???? !@#%^&*
Young Mr. Karr is an inept “leader” in the legislatures and is but a puppet for the insanest of them all, Mr. Haugaard, but on this stogie law bill he has a good idea. grudznick applies the stamp of approval.
Since golf balls aren’t really owned, they’re only leased until they’re ultimately lost, there should be a tax cap of one penny per unit sold.
SDGOP, GFYWYPC.
Ms. Geelsdottir, isn’t that a Billy Clinton move?
Thank You Cory for bringing to light what happens in Pierre. There is so little news about the legislative session in our newspapers, something like this would never to reported.
What would be the motivation for proposing this legislation? Certainly this does not impact a lot of SD citizens as I see very few cigars being smoked. Even if Rep Carr does not have any personal involvement in premium cigars, it just makes it look like he is helping himself or people close to him.
No wonder SD legislators never get around to fixing real problems. IMO bills like this are introduced to take up time so that in the end there is no time to work on real issues like healthcare.
Penis Envy much, Representative Chris Karr (R-11/Sioux Falls)? It’s common psychological data that shows that men with small penises talk and fantasize about big penises to distract from their lack of endowment. Big cigars, Chris? Cigars judged by their weight, Chris? Six descriptors of what a “Big Cigar” really is, Chris? You poor fella. Find a stripper bar in Ft. Pierre and relax. The girls won’t laugh at you … to your face, anyway. But we will. Heh heh Ho!
O, we can’t tax the wealthy for Social Security, because then they wouldn’t have as much money to buy premium cigars, and then the whole darned economy would collapse.
Scott, I’m simply amazed that this bill is seeing the light of day and that it has so many co-sponsors.
Curt, I’d love to see a fiscal note. How many cigars are we talking, and how much tax?
House Commerce and Energy spent so much time yesterday dissing cops that they didn’t get to vote on Karr’s cigar tax break. They’ll try again Wednesday morning at 10 a.m. in Capitol Room 464.
I’m for this bill!!! It’s purpose is to kill elitist Republicans.
My daughter tells me that Covid-19 deaths in China are mainly in the older smoker cohort. And who smokes more of these sea-gars than elitist Republicans. Isn’t this why Rush has lung cance? If he comes down with Covid-19, he’s gone in a flash of a matchstick, Praise the Lord! The more they smoke the faster they die. Good riddance, pass the bill with a veto proof majority and pass the cigar over to Rep. Karr. Bah-bye.
What Don said. 🤣🤣🤣🤣🤣
As you usually drill down into legislation better than this Corey, I’m a bit surprised at you.
The primary focus of the bill is to allow Cigars to be shipped into the state. SD is one of two states (us and Utah) that do not allow Cigars to be shipped to an individual.
To start allowing the shipment without creating tax parity between brick and mortar stores and online retailers would put local stores out of business. The tax cap is implemented in many states, including MN and IA as a way for businesses that pay property taxes, pay employees, and support local economy, to compete.
So no, this isn’t an elitist program, this simply catches us up with the other states. 36% of states treat premium cigars differently. 82% have lower taxes on premium cigars, and 96% allow shipment of cigars.
So, JP, you’re telling me that other states give tax breaks for this luxury item? Sounds like we’re just aping a small form of elitism already too prevalent in other states. The fact that everyone else does it doesn’t make it non-elitist.
So this is pretty much a nationwide rich old white guys law. Thank god we’re putting time and effort into caring for them while cutting off same for women, children and POC.
This kind of thing is exactly why voters are outraged and exactly how far out of touch the GOP/SDGOP and their most rabid and/or brainwashed supporters are.
Franklin Otis Carroll has written a good piece in SD Standard about outrage.
is.gd/lKcoZr
So no, this isn’t an elitist program, this simply catches us up with the other states.
Don’t mean to hijack thread, but other states pay workers much more, pay teachers much more and keep more of their graduates home and working in state, so more taxes are collected to provide more services for citizens.