Yesterday, New Mexico’s 2023 regular session came to a close. As part of the end of the session, legislators passed H.B. 547, which makes a long list of changes to taxes in New Mexico. Included on that list is one that will cost New Mexico’s cigar smokers.

The bill removes the existing 50-cent cap on cigar taxes, meaning that cigars will be charged the state’s existing excise tax rate for other tobacco products of 25 percent. Any cigar with an MSRP of $4 or more will pay more taxes than before. For some context, a cigar with an MSRP of $9.50 would have previously been assessed the 50-cent maximum for cigars; going forward that same cigar will be assessed $1.19 in excise taxes.

New Mexico charges a different tax rate for “little cigars,” which are defined as cigars that weigh less than 4.5 pounds per thousand cigars.

Gregory Conley, director of legislative and external affairs for the American Vapor Manufacturers, outlined how these tax changes came to be:

H.B. 547 cleared both the New Mexico House and Senate. Gov. Michelle Lujan Grisham, a Democrat, has until April 7 to veto or pocket veto legislation passed in the most recent session. If signed into law, the new tax rate will take effect July 1, 2023.

Overall Score

Avatar photo

Charlie Minato

I am an editor and co-founder of 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.