Aloha and welcome!
Our Mission
The Hawaii Cigar Association mission is very simple. We are a collective group of business owners, and consumers in Hawaii who both enjoy the pleasures of premium cigars, and who are dedicated to preserving the rights of adults to enjoy one of nature’s finest gifts. Premium cigars as we define them are cigars that are made entirely by hand of all natural tobacco leaf.
Whether it be at social events, or through public advocacy, the Hawaii Cigar Association is an exclusive group that welcomes all like minded individuals.
Integrity has no need of rules. ~Albert Camus
I think that we should be men first, and subjects afterward. It is not so desirable to cultivate a respect for the law, so much as for the right. ~Henry David Thoreau
The Hawaii Cigar Association also serves as a link to other cigar associations around the world. Through these groups we are connected to an extended family of growers, manufacturers, retailers, consumers, and like minded individuals.
A HISTORIC LEGAL VICTORY, August 9, 2023
Federal Judge Rules Against FDA Regulation of Premium Cigars
On August 9th, 2023 it was difficult for many of us involved in the Hawaii Cigar Industry to celebrate this historic legal victory while so many of our members, fellow business owners, friends and family were suffering through the fires on Maui. Today, and nearly 2 months later we are pleased to post this important update involving the court ruling and FDA regulation over premium cigars.
In a joint lawsuit brought by Cigar Association of America (CAA), Cigar Rights of America (CRA), and the Premium Cigar Association (PCA) the August 9th ruling in the U.S. District Court for the District of Columbia ruled in the premium cigar industry's favor by vacating the U.S. Food & Drug Administration's (FDA) deeming regulations introduced by the agency in 2016 do not apply to any cigar that meets the definition of "premium cigar."
• Are wrapped in whole tobacco leaf
• Contain 100 percent leaf tobacco binder
• Contain at least 50 percent long filler tobacco
• Are handmade or hand rolled
• Have no filter, non tobacco tip or non tobacco mouthpiece
• Do not have a characterizing flavor other than tobacco
• Contain only tobacco, water and vegetable gum with no other ingredients or additives
• Weigh less than 6 pounds per 1,000 units
Judge Amit Mehta issued this ruling that struck down all FDA regulations stating that the FDA acted in arbitrary and capricious manner when it failed to adequately address scientific data that the various trade organizations provided during the initial comment period.
It should be noted that the Hawaii Cigar Association pushed for bills in the Hawaii state legislature as early as 2013 (three years prior to the federal lawsuit) and included nearly the same language and definition of a premium cigar that the court defined in this ruling.
CAA, CRA, PCA vs FDA COURT RULING
Update to this case does involve the FDA appealing this decision to the U.S. Court of Appeals for the District of Columbia Circuit on September 29, 2023. This is not surprising as the FDA does appear to be responsible for reimbursing the millions of dollars taken from small businesses as a result of monthly user fees first imposed on October 1, 2017 as a result of the August 9th ruling.
June 6, 2023
HAWAII LAW MAKERS TAKE AIM AT PREMIUM CIGARS WITH NEW LAW DISGUISED AS YOUTH VAPING LEGISLATION!
In typical cloak and dagger fashion Hawaii's politicians pushed SB 975, now Act 62, across the finish line as it was signed into law by Governor Josh Green on June 6, 2023. The new law begins on July 1, 2023 and was created with the intent to stop underage access to vaping products, but it also mislead and fooled its way through the law making process by including language that now restricts legal aged adults from having access to premium cigars from outside of Hawaii. While the law prevents the shipment of vaping products into Hawaii it also heavily impacts premium cigar aficionados who are accustomed to purchasing their cigars through the mail. The new law will now encourage expansion of the the black market as the majority of cigar lovers will not be deterred from acquiring their cigars, or swayed into buying locally. As a result of this law the state's tax collection problems will only be exasperated. If legislators had any sense to them they would simply fall in line with what many states across the US have done and cap premium cigars at a rate of 50¢ per cigar. This cap would offset shipping costs to Hawaii and place the state in a much better position to collect taxes while removing the incentive to buy through the black market. It would also allow Hawaii's only cigar producer to pay an equal amount in taxes so they can compete on a level playing field when it comes to pricing. Honestly and very bluntly, why would anyone buy a box of premium cigars locally at a price that is much higher in Hawaii than it is on the mainland? For example, if Joe Smith can have a friend bring or send them a $100 box of 25 cigars from Florida why would Joe Smith even consider buying that same box of cigars in Hawaii for $200 ($50 tax, $50 dealer mark up)? A $12.50 (50¢ per cigar tax) on this box of cigars paid by a licensed source in Hawaii would remove any added incentive of shipping them into the islands. Use the same premium cigar definition that both the courts, and Food and Drug Administration have now recognized and cap the tax on premium cigars in Hawaii.
In the media:
2021 Hawaii Legislative Session
Aloha Hawaii Cigar Association members. Legislators will again consider a tax cap of 50 cents on all large cigars. We encourage you to track these bills and voice your support.
SB177 A Senate bill that caps the tax on large cigars at 50 cents.
HB121 A House bill that caps the tax on large cigars at 50 cents.
HB868 A House bill that caps the tax on large cigars at 50 cents.
The HCA will continue to float the idea of the State of Hawaii adopting the United States Food and Drug Administration's definition of a premium cigar:
1. Is wrapped in whole tobacco leaf;
2. Contains a 100 percent leaf tobacco binder;
3. Contains at least 50 percent (of the filler by weight) long filler tobacco (i.e., whole tobacco leaves that run the length of the cigar);
4. Is handmade or hand rolled (i.e., no machinery was used apart from simple tools, such as scissors to cut the tobacco prior to rolling);
5. Has no filter, nontobacco tip, or nontobacco mouthpiece;
6. Does not have characterizing flavor other than tobacco;
7. Contains only tobacco, water, and vegetable gum with no other ingredients or additives; and
8. Weighs more than 6 pounds per 1,000 units
Reference Premium Cigar FDA Definition
Premium cigars DO NOT pose the same health risk as other tobacco products. Premium cigars ARE NOT marketed to, or used by youth. The HCA believes that premium cigars SHOULD NOT be regulated, or taxed like other tobacco. An increase in taxes and regulation would only further the black market distribution of cigars in Hawaii, and lower the State's collection of taxes. Legal aged adults should have the freedom to enjoy a premium cigar, and this industry which is comprised of small businesses should not be regulated and taxed out of existence.
COURT RULES AGAINST FDA
CIGAR REGULATIONS!
August 19, 2020
The Premium Cigar Association and Cigar Rights of America won a key battle in the war against FDA regulations, today. Read more here:
https://premiumcigars.org/news/court-blocks-fda-product-approval-requirements-for-premium-cigars/?fbclid=IwAR1bSdYY0KUCElAcZ59DZab7rq9tI4kAydy86hcj4eaYgPMIXBVaKtdrZi0
https://www.cigaraficionado.com/article/court-strikes-down-key-premarket-review-process-for-premium-cigars?fbclid=IwAR1bSdYY0KUCElAcZ59DZab7rq9tI4kAydy86hcj4eaYgPMIXBVaKtdrZi0
2020 Hawaii legislative Session
Aloha Hawaii Cigar Association members. Legislators will again consider a tax cap of 50 cents on all large cigars. We encourage you to track these bills and voice your support.
SB2101 A Senate bill that caps the tax on large cigars at 50 cents.https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=2101
February 3, 2020 Federal Judge Strikes Down FDA Warning Labels for Premium Cigars
https://www.cigaraficionado.com/article/d-c-judge-strikes-down-premium-cigar-warning-labels
2019 Hawaii legislative Session
Aloha Hawaii Cigar Association members. Legislators will again consider a tax cap of 50 cents on all large cigars. We encourage you to track these bills and voice your support.
SB222 A Senate bill that caps the tax on large cigars at 50 cents.
https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=222&year=2019
HB331 A House bill that caps the tax on large cigars at 50 cents.
https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=331&year=2019
2018, Legislative Agenda in Hawaii
The Hawaii Cigar Association in collaboration with Cigar Rights of America (CRA), International Premium Cigar & Pipe Retailers Association (IPCPR) and Cigar Association of America (CAA) is tracking several bills in this year's state legislature.
Legislators will again consider a tax cap of 50 cents on all large cigars. This same cap has been up for passage over the last five years and has passed both the Senate and the House during this time. We will again hope for reason to prevail as we know youth are not attracted to large premium cigars, and that the health risks are far less when compared to other tobacco products. The disparity in tax also harms local businesses such as the Kauai Cigar Company. It is unfair that a local producer pays more for taxes because of a higher cost of production in Hawaii. Even cigarettes and small cigars are taxed per piece.
In total there are 9 cigar related bills that we are tracking during this 2018 Hawaii legislative session. They are as follows:
SB2843 A Senate bill that caps the tax on large cigars at 50 cents.
https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=2843
HB2083 A House bill that caps the tax on large cigars at 50 cents.
https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=2083
SB2209 A Senate bill Increases the license fee for wholesalers or dealers of cigarettes and tobacco products. Increases the taxes on cigarettes and tobacco products.
https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=2209
HB1636 A House bill that Increases the license fee for wholesalers or dealers of cigarettes and tobacco products. Increases the taxes on cigarettes and tobacco products.
https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=1636
HB1907 A House bill that prohibits the remote sale and shipment of cigarettes and tobacco products, including electronic smoking devices, to consumers except to licensed wholesalers or dealers and permit-holding retailers. Makes violation of the prohibition a class C felony.
https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=1907
SB2654 A Senate bill that "makes unlawful shipment of tobacco products to anyone other than a licensee. Includes e-liquid within the definition of "tobacco products", as used in the cigarette tax and tobacco tax law, thereby making all provisions of the cigarette tax and tobacco tax law that relate to tobacco products applicable to e-liquid as well. Increases the license fee for wholesalers or dealers and the retail tobacco permit fee."
https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=2654
HB2492 A House bill that "makes unlawful shipment of tobacco products to anyone other than a licensee. Includes e-liquid within the definition of "tobacco products", as used in the cigarette tax and tobacco tax law, thereby making all provisions of the cigarette tax and tobacco tax law that relate to tobacco products applicable to e-liquid as well. Increases the license fee for wholesalers or dealers and the retail tobacco permit fee."
https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=2492
SB2304 A Senate bill that prohibits the issuance of retail tobacco permits and sale of tobacco products and electronic smoking devices by businesses that are located within seven hundred fifty feet of a school, public park, or public housing complex.
https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=2304
HB2158 A House bill that prohibits the issuance of retail tobacco permits and sale of tobacco products and electronic smoking devices by businesses that are located within seven hundred fifty feet of a school, public park, or public housing complex.
https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=2158
If you would like to learn more about our efforts to protect the cigar industry in Hawaii please do not hesitate to contact us.
2017, Another Year of Fighting the Nanny State Agenda in Hawaii
The Hawaii Cigar Association in collaboration with Cigar Rights of America (CRA), International Premium Cigar & Pipe Retailers Association (IPCPR) and Cigar Association of America (CAA) is tracking several bills in this year's state legislature. A tax increase from 50% to 70% on all large cigars, and a ban on all internet and mail order sales of cigars in Hawaii are being proposed. Other items on the agenda are the creation of 70% tax on e-cigarettes, a ban of all tobacco use on University of Hawaii campuses, and a fee increase on wholesale and retail tobacco permits.
Fortunately, legislators will again consider a tax cap of 50 cents on all large cigars. This same cap has been up for passage over the last four years and has passed both the Senate (twice) and the House (once) during this time. We will again hope for reason to prevail as we know youth are not attracted to large premium cigars, and that the health risks are far less when compared to other tobacco products.
The disparity in tax also harms local businesses such as the Kauai Cigar Company. It is unfair that a local producer pays more for taxes because of a higher cost of production in Hawaii. Even cigarettes and small cigars are taxed per piece.
Here are list of cigar related bills being debated at our capitol in Honolulu. We encourage you to track these bills and voice your support or opposition. If you have any questions or would like to support with testimony in person please do not hesitate to contact us.
SB871 A Senate bill that caps the tax on large cigars at 50 cents.
http://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=871&year=2017
HB769 A House bill that caps the tax on large cigars at 50 cents.
http://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=769
SB291 A Senate bill that increases the tax on large cigars from fifty to seventy percent.
http://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=291&year=2017
SB342 A Senate bill that bans all internet and mail order sales of cigars in Hawaii.
http://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=342
2016 Hawaii legislative Session
In total there are 7 cigar related bills that we are tracking during this 2016 Hawaii legislative session. They are as follows:
SB2135 A Senate bill that caps the tax on large cigars at 50 cents.
http://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=2135
HB1634 A House bill that caps the tax on large cigars at 50 cents.
http://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=1634
SB2134 A Senate bill that adds a new definition for premium cigar, and exempts premium cigars from the self service display ban.
http://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=2134
HB1614 A House bill that adds a new definition for premium cigar, and exempts premium cigars from the self service display ban.
http://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=1614
SB399 A Senate bill that defines premium cigar, applies a tax of 50 cents per premium cigar, and exempts premium cigars from the self service display ban. (Re-introduced from 2015 session)
http://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=399
SB400 A Senate bill that defines premium cigar, replaces large cigar with premium cigar, applies a tax of 50 cents per premium cigar, and exempts premium cigars from the self service display ban. (Re-introduced from 2015 session)
http://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=400
HB145 HD1 SD2 A bill that amends the definition of "tobacco products", to include any product containing nicotine, but not containing tobacco. Imposes an excise tax equal to % of the wholesale price of any tobacco product, other than large cigars, sold by a wholesaler or dealer on and after 1/1/2016, whether or not sold at wholesale, or if not sold then at the same rate upon the use by the wholesaler or dealer. Requires an unspecified amount of the moneys collected under the increased excise tax rate to be deposited to the credit of the Hawaii cancer research special fund. Amends the excise tax rate on the sale of large cigars beginning on and after 1/1/2016 to the lesser of cents for each large cigar or % of the wholesale price of each large cigar. (Re-introduced from 2015 session)
http://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=145
If you would like to learn more about our efforts to protect the cigar industry in Hawaii please do not hesitate to contact us.
May 6, 2015
Cigar Tax Cap Goes Up in Flames, Senate Leadership Topples!
On Friday, May 1st, with only thirty minutes remaining before the final decking of the 2015 Legislative season, HB145—a bill that included language to cap Hawaii’s cigar tax—was deferred in conference committee and, by this action, killed. Four days later, on May 5th, the Senate President was ousted. Here is a recap of what has become a three-year struggle by the Hawaii Cigar Association (HCA) and the Kauai Cigar Company to bring fairness and equality to the Hawaii tax code.
HB145 was introduced by Speaker of the House Joseph Souki, House Finance (FIN) Chair Sylvia Luke, and House Consumer Protection & Commerce (CPC) Chair Angus McKelvey. With House leadership pushing forth this measure, there was an air of optimism among all those seeking parity in Hawaii law. Senators Ronald Kouchi and Dr. Josh Green co-introduced a companion bill in SB401. Two other measures that sought a similar tax cap on cigars (but only on strictly defined “premium cigars”) were not taken up in committees; both of those measures were supported by the HCA.
It should first be noted that HB145’s companion bill, SB401, had a single referral to the Senate Ways and Means (WAM) committee, which is chaired by Senator Jill Tokuda. After receiving testimony from the Hawaii Department of Taxation, the bill language was cleaned up and given an effective date of December 31, 2015. On March 10th, SB401 passed the Senate by a vote of 23-2 with only two Senators opposing: Rosalyn Baker and Lorraine Inouye. SB401 ultimately stalled after the House CPC replaced the cigar tax cap language with a tax credit for qualified Hawaii cigar producers. More on the tax credit later.
HB145, on the other hand, began a long and convoluted path towards its ultimate death in the final hour of conference this session. Stating that he did not have the committee votes, CPC chair Angus McKelvey proposed a tax credit that would encourage and aid qualified Hawaii cigar producers that are at a competitive disadvantage because of the current 50 percent wholesale tax on large cigars. The new bill containing the tax credit language passed out of CPC and also passed out of FIN before heading for a final vote in the House. The qualified Hawaii cigar producer tax credit bill passed the House on third reading by a vote of 44-7, with Representatives Fukumoto Chang, Kobayashi, Ohno, Onishi, Rhoads, Thielen, and Tupola voting no. It should be noted that both the Hawaii Cigar Association and the Kauai Cigar Company continued to support a tax cap on cigars even after the proposed language was introduced. We maintain to this day that a tax cap would benefit everyone who does business in Hawaii.
Having passed the House, HB145 crossed to the Senate where opportunists were quick to act on the many concerns raised by the Department of Taxation and the Attorney General on the grounds that the bill was unconstitutional and legally flawed. The Senate Committee on Commerce and Consumer Protection (CPN), chaired by Sen. Baker, then gutted and replaced the entire contents of the bill and gave no consideration in her Senate draft (SD1) to the original bill language that contained a tax cap on large cigars. The language in the proposed SD1 contained an increase in tax from 70 percent to 80 percent on all other tobacco products (OTP), including a new tax on any product that contained nicotine (e-cigarettes), and directed the additional tax revenue to the University of Hawaii Cancer Research Center. It should be noted that during this hearing not one other member of the seven-member CPN committee was present for testimony, and it was only after several awkward moments alone that a vote was achieved by rounding up three other committee members from their offices.
With both opponents and proponents of the new bill language at odds with each other, the bill passed out of CPN and headed towards its final committee stop, WAM. Chair Jill Tokuda, in a bold and helpful way, re-inserted the original cigar tax cap language already passed by the full Senate in SB401. It should be noted that the integrity of Sen. Tokuda was on full display at this important hearing as she attempted to bridge a divide between two opposing sides. This one legislator did right by the people of Hawaii by staking a position that her fellow members of the Senate had already voted on. In addition, and to encourage further discussion, all tax percentages and cap numbers were removed so that the House and Senate could reach agreement in conference committee. The bill, with conflicting purposes at this point, became known as the “Frankenbill” among government lobbyists and watchdogs.
ref: GRASSROOT INSTITUTE OF HAWAII: Smoking Out a Frankenbill
Having reached conference committee on April 28th, and after reconvening seven times over a four-day period, the two sides of CPC and CPN reached an undisclosed agreement on the bill language. All that was needed was a release from FIN and WAM chairs. At 5:15 p.m. on May 1st, with time running out, the FIN failed to release the bill as a result of House Higher Education chair Rep. Isaac Choy blocking any money derived from the bill from going to the University of Hawaii Cancer Research Center. The Center has come under recent criticism by lawmakers for mismanagement and misuse of public funding.
ref: KHON2: Report highlights UH Cancer Center struggles
Without a deal to fund the failing research center, Sen. Baker refused to allow the bill to pass out of conference. It should be noted that the Cancer Center has seen a dwindling of money as a result in the decline of cigarette tax revenue from twenty million dollars to fourteen million dollars annually and the recent ending of federal money.
With all that was lost in year three of this struggle, a major political power shift occurred within the Hawaii Senate. As reported on May 5, 2015, Senator Ronald Kouchi of Kauai seized the presidency from Donna Kim. For all those who love and enjoy cigars in the Aloha State, we feel confident that year four will bring success for tax parity on premium cigars.
ref: HONOLULU CIVIL BEAT: Kouch Takes Gavel as New Senate President After 'Bloodless Coup'
The HCA still supports the definition of a premium cigar as being a cigar that is wrapped in whole tobacco leaf; contains a 100 percent leaf tobacco binder; contains primarily long filler tobacco; is made by manually combining the wrapper, filler, and binder; has no filter, tip, or non-tobacco mouthpiece and is capped by hand; does not have a characterizing flavor other than tobacco; and weighs more than six pounds per thousand units. The HCA will continue to seek exclusion from FDA regulations and support the fair treatment of cigars under Hawaii law.
From left to right: newly elected Hawaii Senate President, Ron Kouchi with friends Pat Harrington and Mike Tressler, Kauai County Councilman, Arryl Kaneshiro, Trevyn Pless, Les and Jorgen Drent and Tai Erum of the Kauai Cigar Company with Kauai County Council Chair, Mel Rapozo.
Feb 28, 2015
Two cigar tax bills are up for hearing this week
The 2015 Hawaii Legislative Session is now moving fast in both the House and the Senate prior to the first cross over.
Two cigar tax bills are up for hearing this week. At 9AM on Tuesday, March 3, 2015 the Senate Committee on Ways and Means (WAM) will hear SB401, a bill that places a tax cap of fifty cents on all large cigars.
At 11AM on Wednesday, March 4, 2015 the House Committee on Finance (FIN) will hear a version that originally contained matching language to SB401, a bill that places a tax cap of fifty cents on all large cigars. The new language in HB145 HD1 relates to a tax credit for qualified cigar producers in Hawaii.
We all acknowledge that mail order cigar sales go untaxed, and a change in the law would allow local businesses, and consumers to keep our dollars here in Hawaii.
We kindly ask that you read, and offer your SUPPORT or comments on these two measures up for hearing. Testimony must be submitted no later than 9AM on Monday for SB401, and no later than 11AM on Tuesday for HB145 HD1.
You may track and submit testimony in SUPPORT of these measures by clicking the following links:
SENATE BILL SB401
HOUSE BILL HB145
Your testimony plays a pivotal role in the process. If you have any questions, or comments prior to your involvement please feel free to email, or call us at 808-822-4495. The HCA will be at the Capitol on both Tuesday and Wednesday.
Help Exempt Premium Cigars From FDA Regulation!
H.R. 662 / S. 441 - A bill to clarify the FDA's jurisdiction over certain tobacco products
With the close of the comment period on the FDA's proposed deeming rule to regulate premium cigars, it's incumbent upon the cigar enthusiasts of the United States to voice their opposition to the proposed regulation of premium cigars by contacting your Members of Congress to ask for their support of H.R. 662 and S. 441.
H.R. 662 and S. 441 have been filed in both the U.S. House of Representatives and the U.S. Senate under the banner "To amend the Federal Food, Drug, and Cosmetic Act to clarify the Food and Drug Administration's jurisdiction over certain tobacco products, and to protect jobs and small business involved in the sale, manufacturing and distrubtion of traditional and premium cigars." This bi-partisan legislation would protect premium cigars from FDA regulatory authority. This legislation will have a profound impact on protecting the industry, from the fields and factories of Central America to the supply-chain throughout this nation, to the community tobacconist, to enjoying a cigar in the local shop, club or back porch.
Take action now and respectfully ask your Member of Congress to co-sponsor H.R. 662 and S.441.
Jan 26, 2015
Hawaii Legislative Session has begun
We all acknowledge that mail order cigar sales go untaxed, and a change in the law would allow local businesses, and consumers to keep our dollars here in Hawaii.
HB144
HB145
SENATE BILLS:
SB399
SB400
SB401
June 1, 2014
FDA Update on Premium Cigars; Hawai‘i Cigar Tax Cap
Aloha Hawaii Cigar Association members and supporters of premium cigars!
The 2014 Hawai‘i legislative session has ended, and again Hawai‘i’s premium cigar industry has been denied parity and fairness in the state’s tax code. In 2013 the state Senate passed a cigar tax cap bill (SB188) on premium cigars by a vote of twenty-four to one. This year the House passed its own version of a tax cap (HB1849), which included all large cigars. Surprisingly, Senate Ways and Means chair David Ige deferred the bill indefinitely, with neither a vote nor a public hearing. Prior to the deferral, the bill had been amended and sent to the Senate Committee on Health. Amendments included striking the $.50 tax cap on all large cigars and leaving the tax amount open for further debate. A second amendment would have added language exempting premium cigars from the self-service display ban set to go into effect July 1, 2014. But rather than amending the bill, as the Attorney General’s office suggested, or sending it to conference committee, Senator Ige deferred it, thus killing any hope of its passage this year. This was certainly unexpected, because last year Senator Ige had supported a $.50 tax cap on premium cigars.
Regardless, the HCA would like to thank legislators on both sides for moving us closer to solving the tax disparity on premium cigars and for supporting those of us who create local jobs, support our communities and assure tax revenue for Hawai‘i. Sixty out seventy-six state legislators support a tax cap on cigars, and we are confident that a compromise can be reached in 2015; we believe that lawmakers will pass legislation that benefits local industry and satisfies those who desire fairness in the law.
We would again like to thank those legislators who have supported our cause over the last two years.
Thirty-six of fifty-one House members voting aye for HB1849 and a $.50 per large cigar tax cap in the 2014 session:
Henry Aquino, Karen Awana, Della Au Belatti, Tom Brower, Rida Cabanilla, Romy Cachola, Mele Carroll, Isaac Choy, Denny Coffman, Ty Cullen, Cindy Evans, Richard Fale, Mark Hashem, Linda Ichiyama, Jo Jordan, Derek Kawakami, Chris Lee, Nicole Lowen, Sylvia Luke, Bob McDermott, Angus McKelvey, John Mizuno, Dee Morikawa, Mark Nakashima, Scott Nishimoto, Richard Onishi, Karl Rhoads, Scott Saiki, Calvin Say, Joseph Souki, Mark Takai, James Tokioka, Clift Tsuji, Justin Woodson, Ryan Yamane and Kyle Yamashita.
Twenty-four of twenty-five Senate members voting aye for SB188 and a $.50 per premium cigar tax cap in the 2013 session:
Rosalyn Baker, Suzanne Chun Oakland, Donovan Dela Cruz, Kalani English, Will Espero, Mike Gabbard, Brickwood Galuteria, Josh Green, MD, Clayton Hee, David Ige, Les Ihara, Gilbert Kahele, Gilbert Keith-Agaran, Michelle Kidani, Donna Kim, Ronald Kouchi, Clarence Nishihara, Russell Ruderman, Maile Shimabukuro, Sam Slom, Malama Solomon, Brian Taniguchi, Laura Thielen, Jill Tokuda and Glenn Wakai.
In response to the US Food and Drug Administration’s 241-page document of proposed tobacco regulations released last April, the HCA visited Washington, DC to share our views. Sens. Mazie Hirono and Brian Schatz joined Rep. Colleen Hanabusa in supporting the premium cigar industry by sponsoring Cigar Rights of America’s legislative efforts in S772 and HR792. Both Sen. Hirono and Rep. Hanabusa have stood by the HCA and CRA since day one of this effort, which began two years ago. Their sponsorship of these bills was a vote for small businesses and job protection. It also sent a message to the FDA that America’s cigar tradition should not be regulated out of existence, particularly because that tradition poses little to no threat to our nation’s youth. The HCA is deeply grateful for their support and willingness to compromise.
left: Senator Mazie Hirono, middle: Senator Brian Schatz, right: Congresswoman Colleen Hanabusa
If adopted, option two of the FDA report would exempt premium cigars from further FDA regulation. During the seventy-five-day public comment period allowed by the FDA, it is critical for premium cigar consumers, retailers and manufacturers to voice their support for such an exemption. Members of the public can share their comments by visiting the CRA web site at http://cigarrights.org/fda-response.php. Manufacturers and retailers can visit the International Premium Cigar & Pipe Retailers Association can voice their opinion by visiting http://www.ipcpr.org/?page=LegislativeActionCen. For more information about these legislative efforts, please visit the Hawaii Cigar Association’s web site. Be sure to voice your opinion by July 9, 2014! The letters below were recently submitted to members of Congress and the FDA on behalf of the HCA.
HCA letter to the U.S. House of Representatives
HCA letter to the U.S. Senate
HCA letter to the U.S. Food and Drug Administration
Kauai Cigar Company letters to the U.S. Food and Drug Administration
The Hawaii Cigar Association will keep the public up to date on all matters relating to state and federal matters relating to premium cigars.
State of Hawaii "premium cigar" flat rate tax bill SB188
SB188 defines a "premium cigar", and assigns a flat rate tax of 50 cents per "premium cigar". Sign the petition
Premium cigars as we define them are cigars that are made entirely by hand of all natural tobacco leaf, hand-constructed and hand-wrapped, with no filter or characterizing flavor, and weighing more than four pounds per one thousand cigars.
LEGISLATIVE TRACKER
| Hawaii Cigar Tax Petitions Signed | 893 |
| Hawaii Supporting Businesses | 211 |