Just a few months ago the state of the cigar industry in New Mexico looked like it was headed toward its demise. As the state proposed a tripling of the cigar taxes to 76% many cigar shops were worried they would be forced to shut their doors sending their customers to order cigars online.
On the last day of legislative calendar the luck of the Irish shined down on Jack Sweeney, owner of a Santa Fe cigar shop. The house and senate passed House Bill Number 6 which would cap the cigar tax at 50 cents per stick which in turn is a win for small business.
Under the old tax a $10 MSRP retailed for $12.40, which would have gone up to $17.60 per cigar. With the new cap that same cigar is expected retail for $11.00.
The bill now heads to the Governor’s desk for his signature.