The Pennsylvania budget is still up in the air, but the legislature and governor appear to be making progress ahead of the June 30, 2010 deadline. The gap between the two sides is narrowing, and there is reason for optimism among the negotiators. For cigar smokers, however, it’s hard to relax. A cigar tax remains on the list of possibilities being considered.
The Philadelphia Inquirer reports:
Whatever spending legislators eventually settle on, they must also address how to close a $1.5 billion shortfall in revenue. Rendell and House Democrats have laid out “a menu” of tax options totaling about $300 million for Senate Republicans to consider. Among the options are new levies on natural gas extraction from Marcellus Shale and on cigars and smokeless tobacco – as well as increased cigarette taxes. Also still under discussion is a proposal to eliminate the vendor discount businesses get for paying sales taxes on time.