How You Can Help Keep Cigar Prices Down

I am writing this Monday morning email from New York City. (Cliche photo included).

It’s a great city, but every time I visit I am reminded of one thing - cigars are expensive here.

A cigar you buy back home in Texas can easily cost considerably more in New York. It isn’t because the cigar cost more to make or because the retailer is necessarily making more money. A big part of the difference is taxes.

We all pay federal excise tax on premium cigars, but after that, things can look very different depending on what state you’re standing in.

New York taxes cigars at 75% of the wholesale price. Utah is even higher at 86% of the manufacturer’s sales price.

On the other end of the spectrum, there are states that don’t impose a state excise tax on premium cigars at all.

Think about what that means.

Two retailers can buy essentially the same box from the same manufacturer, but depending on where their stores are located, one may have a significant additional tax built into the cost before they ever sell the first cigar.

It is one of the reasons I believe cigar consumers should pay attention to legislation affecting our industry.

You don’t have to become a cigar lobbyist or spend your days following bills through the state legislature. But if you enjoy premium cigars and want them to remain reasonably priced and accessible, there are a few simple things you can do.

Vote.

Pay attention when cigar legislation comes up in your state and let your elected officials know where you stand.

Ask your local retailer if they are a member of the Premium Cigar Association. The PCA does a tremendous amount of work representing retailers and protecting our industry.

And consider joining Cigar Rights of America. They advocate for premium cigar consumers and manufacturers across the country.

We spend a lot of time talking about wrappers, blends, factories and new releases in these emails. But protecting our ability to enjoy those cigars - and afford them - is probably just as important.

Now I’m going to go enjoy New York City and try not to look at the price tag on my next cigar.

• Brandon