I have bought cigars in my local Tinder Box, but their prices are so much higher than from Internet cigar sellers online. What gives?
The difference in prices can be attributed to OTP (Other Tobacco Products) Taxes levied on products other than cigarettes by states. (Cigarette taxes are a completely separate and different tax.) These taxes range from just a few cents per cigar or pound of tobacco to as high as 92% on the wholesale price. You can download a pdf of these amounts here. This information is current as of April 1, 2010. WIth pending legislation in many states, these rates could change without notice. Remember, just because the out of state company you buy from does not charge you either sales or OTP taxes, does not mean you do not have to pay them. In most states, you are responsible to report and pay all use taxes on out of state purchases. Remember too, when you purchase from your local tobacconist, the taxes levied on their products go to your state.
