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Old May 26th, 2010, 11:33 AM
Crown Hookahs
Status: Offline
Join Date: Nov 2009
Location: Salt Lake City, UT
Posts: 214
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Default Re: UTAH tax on Tobbaco

Actually, it's pipe tobacco and cigars as well. I also manage a hookah shop here in Salt Lake, UT. currently our OTP tax is 35% (basically, the retailer has to pay an additional 35% of our wholesale cost to the State of Utah.) July 1st, it's going to 86%. Remember everyone complaining about the tobacco prices in Texas? That'll be Utah as well before long.

Also, not long ago Utah passed a law that prohibits the commercial sale of tobacco via state lines, joining the ranks of Montana and Washington.

As a consumer, and as a retailer, this pisses me off. We are closing our cigar humidor because of this. We have one of the most beautiful humidors in Utah, and all that work down the drain. It would actually cost us money just to keep the humidor going. Are you familiar with Jeanies? It's a really top end cigar store, that is closing at the end of June because of the tax. Either that, or have to pay a retroactive floor tax of about $125,000.00 upfront, no payment plans available. All the tobacco on our floor we have to pay the difference between 35% to 86% immediately.
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