Michigan House Republicans
Rep. Hall standing up for small businesses with advancing legislation
RELEASE|May 18, 2021
Contact: Matt Hall

State Rep. Matt Hall is working to provide needed relief as many small businesses throughout Michigan begin to re-emerge from burdensome executive orders in response to COVID-19.

The Michigan House today approved House Bill 4485, introduced by Hall, to address taxes on cigars. A 2012 law placed a 50-cent cap on the sale of premium cigars to help rein in out-of-control taxes that would hurt small businesses that sell them. The cap is set to expire on Oct. 1, but Hall’s plan would make it permanent.

“You’re looking at taxes increasing to 32 percent without this cap in place. That’s a huge increase – to around three or four dollars per premium cigar,” said Hall, of Marshall. “That would harm many small, local cigar lounges that were shut down by Governor Whitmer in response to COVID-19 and have been struggling to get by. We don’t want to encourage people to shop for these products elsewhere. We want these small businesses to be able to be competitive – and this plan works toward that.”

Hall noted premium cigar sales increased in the state in 2012 when the cap was originally put in place, and the proposal will allow Michigan shops and lounges to be competitive. According to testimony when the legislation was in committee, tax revenue also increased 30 percent after the cap was implemented.

HB 4485 now moves to the Senate for further consideration.

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