Add this to the slew of ongoing cigar tax proposals: Philadelphia Councilman Darrell Clarke plans to introduce new legislation aimed straight at cigars at 3.6 cents per ounce for individual stogies. The proposed tax will affect pipe and chewing tobacco, rolling papers, and cigars but not cigarettes.

The City is looking to seal the hole in their budget, estimated at up to $150 million. The proposed tax could raise an additional $6 million  per year. Council members are flirting with the idea of introducing changes to the existing business tax. Currently, Philadelphia business tax has two taxable components: a gross-receipts part, which taxes businesses on their sales, and; a net-income part, which taxes the profits. As it stands, the idea is to raise the gross-receipts rates and do away with net-income rates, which will generate extra revenue for Philly. Council members  argue that this reform will end city-business penalties and hold national retailers accountable.  The current business tax model has received criticism over the years because it taxes businesses on sales regardless of profit. If this new tax reform is passed, Philadelphia can expect to gain an extra $20 million per year. Read more on the new bill here.

How do you feel? Besides lighting a cigar, of course. Do you think that Philadelphia is grasping at straws, or do you feel they have a legitimate City tax fundraiser?