Rhode Island to start charging more for cigarettes

THE CIGARETTE TAX was increased by 50 cents as part of the fiscal 2018. The tax hike will take effect on Aug. 16. / BLOOMBERG FILE PHOTO/DANIEL ACKER
THE CIGARETTE TAX was increased by 50 cents as part of the fiscal 2018. The tax hike will take effect on Aug. 16. / BLOOMBERG FILE PHOTO/DANIEL ACKER

PROVIDENCE – The state will start collecting the cigarette tax at an increased rate on Aug. 16.

The tax was increased by 50 cents as part of the fiscal 2018 budget, marking the only tax increase included in the state budget.

The tax was supposed to go into effect Aug. 1, but state lawmakers failed to pass a budget until earlier this month, a full month late. The impasse raised questions about whether retailers would be charged a retroactive amount.

The state, however, issued some clarifying rules saying that instead of the original collection date of Aug. 1, the state would start collecting the increased amount on Aug. 16.

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Consumers are now required to pay a $4.25 tax on cigarettes per pack, representing a 50-cent increase.

Retailers can read see more details about collection requirements here.

Eli Sherman is a PBN staff writer. Email him at Sherman@PBN.com, or follow him on Twitter @Eli_Sherman.

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