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URGENT: Update on Senate Bill 793

URGENT: Update on Senate Bill 793

SB 793 Is a threat to your business!

Dear California Retailers,

Senate Bill No. 793 has been amended as of August 10, 2020, yet still continues to threaten our small businesses throughout the State of California for the following reasons:

  • A $12 wholesale price for a premium cigar, as proposed, would shut down every retailer of premium cigars in California. As you know, the US Government charges an excise tax on each premium cigar, plus when the cigar is shipped into California, it is subject to California's excise tax rate of 56.93% prior to being distributed. The distributor then applies a mark-up and ultimately the retailer add its mark-up. SB 793's desire to establish a $12 wholesale price would result in a $24 retail price, per cigar! We believe that it is essential to remove the $12 economic quantifier from SB 793 to prevent the unintended consequences of banning nearly all premium cigar products and forcing California small businesses to close.
  • Based on the language in SB 793 it appears it is requiring all premium cigars to be sold from cigar lounges and the cigars must be consumed on site. Over 95% of premium cigars are sold outside of cigar lounges. They are sold in cigarette and tobacco outlets, liquor stores, and golf courses, in addition to cigar lounges.
  • SB 793 will cost the State of California far more than the estimated $200 million dollars stated and, in fact, cost that much alone to attempt to enforce SB 793.

The Republican minority in the Senate and Assembly stand with us in opposing SB 793, therefore; the Democratic controlled Senate and Assembly Members need to hear from you!

They will be voting on this bill on Thursday, August 20th. If SB 793 goes to a full floor vote and passes, their will be no turning back!

It is no longer enough to sit back and expect someone else to defend your business. You must take matters into your own hands and write in opposition.

We appreciate your attention to this matter. It is a matter of life and death!

Below are the addresses to contact your local government offical:

Governor Gavin Newsom

1303 10th Street, Suite 1173

Sacramento, CA 95814


Senator Jerry Hill

1528 South El Camino Real, Suit 303

San Mateo, CA 94402



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