1. United States
2. Ga.
3. Letter

I am writing as a constituent and as someone concerned about the impact of SB 520 on Georgia’s small businesses and adult consumers. SB 520 would increase the cigar tax rate from 23 percent to 28 percent and permanently tie that tax to inflation. This means not only a significant immediate tax increase, but automatic tax hikes year after year without additional legislative debate or accountability. Premium cigar retailers in Georgia are small, locally owned businesses. They are not large corporations. They are family operated shops that employ Georgians, pay rent and property taxes, and contribute meaningfully to their communities. Many are already struggling with increased operating costs due to inflation. Raising the cigar tax and indexing it to inflation will: Increase retail prices and reduce sales Drive consumers to purchase products in neighboring states Undermine local brick and mortar businesses Create long term uncertainty due to automatic future tax increases Premium cigars are distinct from other tobacco products. They are handmade, traditionally produced, and enjoyed occasionally by adults. They should not be subjected to automatic tax escalators that compound inflationary pressures. I respectfully urge you to oppose SB 520 and protect Georgia’s small businesses and adult consumers from unnecessary and automatic tax increases. Thank you for your time and consideration.