New Hampshire Cigar Tax Hike

By Michael Moretti

The "Live Free or Die State" could be killing its local cigar shops if the government passes a new proposal to tax cigars.

The New Hampshire House of Representatives is considering a bill that would introduce a 60 percent tax on the wholesale price of a retailer's entire cigar inventory, as well as a 60 percent tax on the wholesale price of individual sticks purchased. At that rate, a cigar sold for $2 at wholesale would have a tax of $1.20 added.

Last July, New Hampshire became the last state in New England to enact a comprehensive indoor smoking ban eliminating lighting up in virtually all public spaces, including restaurants and bars. If the proposed tax bill passes, it would mandate a July 1, 2008 activation date.

For more on this story, see the upcoming issue of Cigar Insider.

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