Those who smoke little cigars may soon have to pay state taxes on them.
The House of Representatives voted, 187-136, to endorse legislation that alters the definition of a cigarette in state tax law to govern these so-called cigarillos.
State Rep. William Hatch, D-Gorham, said it's not fair these items are not taxed.
This effectively closes a loophole that companies are using to sell cigarettes as cigars to avoid taxes that are on cigarettes," Hatch said.
But Rep. Steve Vaillancourt, R-Manchester, said cigars are not taxed and it's unfair to single these out.
"Calling a cigar a cigarette does not make a cigarette," Vaillancourt said. "If you really ought to be honest, you ought to tax all cigars."
Opponents also noted the federal government does not tax these items. The measure now heads to the State Senate.
Thursday, April 03, 2008
Source: Nashua Telegraph