Keep The Momentum Going Maryland! Say NO to the OTP Tax Increase!
As your local Maryland tobacconist we need your help now! Contact your Maryland delegate and senator NOW and tell them no new cigar and pipe tax increases! Take Action!
- While the 20% Other Tobacco Products (OTP) tax now attached to Maryland Senate Bill 523 is less than the tax in the Budget Resolution and Financing Act (BRFA) and other bills, it still increases the tax burden by 1/3 – from 15% to 20%.
- This burden falls disproportionately on premium cigar retailers, because the substantial majority of their revenues (close to 90%) are derived from the sale of premium cigars and accessories which are subject to the tax.
- By contrast, this increase will impact the tax liability of convenience stores very little, since a small portion of their revenues come from the sale of OTP.
- The overwhelming majority of premium cigar retailers are very small, owner-operated businesses, and a 20% OTP tax means that many of them will pay close to $10,000 in additional taxes under the bill. This could mean that retailers will have to cut other expenses, such as payroll or benefits.
- If the OTP tax on premium cigar retailers is restored at the 15% level, the total fiscal impact to the State will be is less than $500,000 – a rounding error in calculating the State Budget.
- Please return the OTP tax on premium cigars to its current level of 15%.
Take action now! Contact your delegates and senators and urge them to oppose any new tobacco tax increases!
The IPCPR (International Premium Cigar & Pipe Retailers Association) has set up an easy to use Legislative Action Alert that will allow you to contact your representatives:
Instructions for using IPCPR Legislative Action Alert:
- Using your internet browser, go to www.ipcpr.org/legislation.html;
- Find and double-click on the Maryland Action Alert;
- When the Action Alert screen opens, enter your 5-digit zip code and click go;
- As you may be in a split district, you may be prompted for your mailing address. Complete those fields and click go;
- You will now see the Action Alert message page. Follow the instructions to send your note to your state delegate and senator.
From all of us at Drapers Bethesda, thank you for your support.