Jim Rosica
State regulators say they will no longer tax do-it-yourself cigar wrappers, or “blunt wraps,” a tobacco product perhaps better known as one used to smoke marijuana.
That cost – a combination of an excise tax and surcharge that comes to a whopping 85 percent – was only paid by wholesalers, but the cost was passed to consumers.
The decision by the Department of Business and Professional Regulation follows an appellate court order from last Wednesday that said such wrappers are not “loose tobacco suitable for smoking” for state taxing purposes.
A panel of the 1st District Court of Appeal agreed with an administrative law judge that “a blunt wrap is no more loose tobacco than a piece of writing paper is loose wood.”
In a Monday memo, the department issued its decision, clarifying that it applied to “homogenized tobacco wrap products,” which include other ingredients besides tobacco, and not to “whole leaf tobacco wrap products.”
The wraps in question are most often found on inexpensive machine-made cigars, such as Phillies and Swisher Sweets, and not pricier premium cigars.
“Based on the court’s opinion, the Division of Alcoholic Beverages and Tobacco will no longer assess excise taxes or surcharge on homogenized tobacco wrap products,” the memo said.
Here’s a helpful explainer from DBPR:
“Homogenized tobacco wraps, like rolling papers, are designed to be used as the outer wrappers of homemade cigars. Unlike whole leaf wraps, homogenized wraps combine tobacco, wood pulp, and other materials into a manufactured product that is distinct, cohesive and uniform. Homogenized wraps appear uniform – often like coarse paper – and are generally cut to a specific, predetermined shape.”
The department further said it was “dismiss(ing) any outstanding” tax due on blunt wraps.
