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Legislation

North Carolina Gets Cigar Tax Max

Dec 2, 2021 | By Chris Esposito
North Carolina Gets Cigar Tax Max

Applause is in order for the Tar Heel State. North Carolina has recently become one of more than a dozen states to introduce a tax cap measure on premium handmade cigars. North Carolina Governor Roy Cooper and the state legislature recently signed into action a $0.30 tax cap for each handmade cigar. The new law will go into effect on July 1.

The new law gives North Carolina's cigar lovers relief for each cigar they buy from brick-and-mortar stores. The state has a 12.85% tax on the wholesale price of a cigar, and many cigars sell for twice wholesale, so those who buy a $10 cigar will see their state tax cut by more than half, from 64 cents worth of tax to only 30 cents. Cigars that are even more expensive will see larger savings. The cap will not only bring down prices for consumers, it will help local cigar shops compete with Internet and catalog giants.

The Premium Cigar Association acknowledged the efforts of State Senator Todd Johnson for spearheading the tax cap. Johnson is a member of the state Finance Committee and a cigar shop owner himself.

Craig Cass, the owner of several Tinder Box cigar stores in the Carolinas, also celebrated the senator’s work: “On behalf of the community of tobacconists throughout North Carolina, we want to commend and thank the leadership of Senator Todd Johnson, support of the legislature and final action by the Governor, making this tax cap possible. This measure will allow our small businesses to better compete, while allowing patrons to ‘shop at home’ for premium handmade cigars…”

Glynn Loope, director of state advocacy for the PCA stated, “This approval… serves as an outstanding national model for others. As tax cap legislation is pending or under consideration in New York, New Jersey and Illinois, this development…is indeed a message to legislatures throughout the nation.”

Michigan was previously the most recent state to join the tax cap group while every cigar lover across the country hopes for the same.

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