Cigar Tax Change Dropped from New York Budget Negotiations

A deal between lawmakers and Gov. Andrew Cuomo surrounding the New York State budget is in place without any changes in cigar taxes. A few months ago, Cuomo proposed a change in how New York collects taxes on premium cigars that would haven seen a 50% tax on the retail price with the distributor paying a flat $.20 per cigar and New York retailers making up the balance. This move would have been a departure from the 75% wholesale tax that is currently collected, a rate that was last increased in the summer of 2010.

As reported by CPSnet, the proposed change was removed meaning that premium cigar taxes will remain the same in New York. For cigar smokers, this can been seen as a win, as the change would have resulted in an increase in price. As of now, the budget still has not been signed, although an agreement is in place. The budget is expected to be passed before the April 1 deadline.

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