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Sanity Returning to New York?

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Some legislators in New York State may finally be recognizing that raising taxes doesn’t automatically mean an increase in tax revenues.

Those in the Empire State who buy cigars at tobacco shops and other retailers are currently socked with a 75% tariff on the wholesale price of cigars. That number skyrocketed from 46% last August, thanks to a move by the state legislature.

My, how half a year can change things. Now on the assembly side, Michelle Shimel and Michael DenDekker are co-sponosoring a bill that would implement a $1 tax cap on cigars sold in New York. A similar bill has been introduced in the state senate by Martin Golden and Tom Libous.

State officials forecast an increase of almost $500 million with the new tax. Opponents, though, say that cigar smokers will buy their sticks from neighboring states or from Internet retailers, with the tax.

New York residents have already received help from some cigar manufacturers. Both La Aurora and Alec Bradley have rolled out special cigars that are blended for, and only sold in, New York State. The companies have priced their special stogies to be

Retailers outside of New York State can sell the New York-only cigars from either company, but they have to purchase the stogies directly from New York sources, like local tobacco shops.


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About Bob Woods

A cigar lover for many years, Bob is combining his appreciation for cigars with his experience and expertise in a wide variety of digital-related areas with Stogie'd. When he's not working on Stogie'd, Bob is creating all kinds of content for his company, CruxBridge Media. He is also vice president/general manager of Electric Advisors, Inc.'s residential division.


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