Proposition 86 Defeated in California

David Savona
Posted: November 8, 2006

The cigar industry breathed a sigh of relief Wednesday morning, waking up to learn that Proposition 86 was defeated in California. The proposal was struck down by a 52 percent to 48 percent margin.

The ballot initiative would have increased the tax on cigars to 135 percent of the wholesale price and forced cigar shop owners to pay a one-time floor tax on inventory. Many would have had to write checks for tens of thousands of dollars, and some in the industry had predicted that many would have gone out of business.

To read an account of watching the results in a California cigar shop, click here.

For more on the industry's reaction, see the next Cigar Insider, due out on November 21.

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