Massive New Mexico Tax Increase Defeated
A bill in Mexico that would have tripled the state’s tax on cigars has been defeated.
The New Mexico House Taxation and Revenue Committee voted against S.B. 231, which would have increased the taxes on cigars and other tobacco products from 25 to 76 percent of the wholesale price. A cigar with a MSRP of $9.50 likely retails for around $11.88 before sales tax in New Mexico. Had S.B. 231 passed, that would have risen to $16.72 before sales taxes.
S.B. 231 was passed by the New Mexico Senate earlier this month.
If passed, New Mexico would have had the second highest tax rate of any state after Utah, which currently taxes tobacco products at 86 percent of the wholesale price.
Charlie Minato
I am an editor and co-founder of halfwheel.com/Rueda Media, LLC. I previously co-founded and published TheCigarFeed, one of the two predecessors of halfwheel. I have written about the cigar industry for more than a decade, covering everything from product launches to regulation to M&A. In addition, I handle a lot of the behind-the-scenes stuff here at halfwheel. I enjoy playing tennis, watching boxing, falling asleep to the Le Mans 24, wearing sweatshirts year-round and eating gyros. echte liebe.
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