Like clockwork each and every January brings the proposal of new taxes and within a lot of those proposals are taxes that could affect the cigar industry. Such is the case in New Mexico where Democrat Senator Howie Morales has proposed to raise the cigar tax a whopping 165%
According to Senate Bill 77, the tax on cigars and OTP products would increase from 25% to 66% percent. The legislature is expected to vote on the bill sometime after they return to session on January 19th.
If the bill is passed a cigar with an MSRP of $12.00 would go up from $13.50 to $15.96.
