A new bill would dramatically lower the taxes on cigars in the state of New Mexico.
Senate Bill 178 would lower the taxes for “fine cigars” from 25 percent of the wholesale price to either 5 cents per cigar for cigars sold in individual packages or 3 cents per cigar if it is packed in a box containing more than one cigar.
A fine cigar is defined as “a roll of tobacco that is wrapped in one hundred percent natural leaf tobacco.”
This is the second bill this session to be introduced in the New Mexico Senate that would change the tax on cigars. Senate Bill 77 would increase the tax to 66 percent.
A cigar that has a suggested retail price of $9.50 likely retails for around $11.88 under the current taxes. Under Senate Bill 178 this would reduce to around $9.55-9.60. If Senate Bill 77’s increase taxes effect this would be $15.77.