Bill Could Increase New York Cigar Tax to 129 Percent

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A bill proposed in the New York State Assembly would make it the most expensive state in the country to buy cigars, effectively doubling the price of cigars in less than a year.

Assemblywoman Linda B. Rosenthal, D-67, has introduced A.B. 11123, which would increase on certain tobacco products, the most damning changes would be for cigars and vapor products.

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If passed, A.B. 11123 would increase the tax on large cigars from 75 percent of the wholesale price to 129 percent of the wholesale price.

A cigar with an MSRP of $9.50 likely retails for $16.63 before sales tax currently. That would increase to $24.51 if A.B. 11123 is passed.

The proposal would also increase the tax on vapor products from 20 percent of the wholesale price to 48 percent.

It would be the second massive tax increase for cigar retailers in less than a year. Last month, a change went into effect that removed a tax scheme that effectively taxed cigars at 28.5 percent of the wholesale price. Under that system, that same cigar with an MSRP of $9.50 cigar was likely around $12.21.

The 129 percent uncapped tax would make cigars in New York the most taxed in the U.S. passing Utah’s 86 percent tax rate.

Earlier this month A.B. 11123 was sent to the Assembly’s Ways and Means Committee. It currently has no other sponsors.

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About the author

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 handle the editing of our written content, the majority of the technical aspects of the site and work with the rest of our staff on content management, business development and more. I’ve lived in most corners of the country and now entering my second stint in Dallas, Texas. I enjoy boxing, headphones, the Le Mans 24-hour, wearing sweatshirts year-round and gyros. echte liebe.

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