Bill > A05284

This bill amends the New York tax law to create a specific tax and definition for "premium cigars" with detailed criteria for classification. The bill defines a premium cigar as a handmade tobacco product with specific characteristics, including being wrapped in whole leaf tobacco, having a 100% leaf tobacco binder, manually combined, without a filter or non-tobacco mouthpiece, hand-capped, and weighing over six pounds per thousand units. The tax on premium cigars will be set at either 75% of the wholesale price or 50 cents, whichever is less, and is intended to be applied only once per sale. The bill includes a sunset provision, meaning these new tax provisions will automatically expire three years after the bill's enactment. This legislation appears to create a distinct tax category for high-end, traditionally manufactured cigars, differentiating them from other tobacco products for tax purposes and potentially offering a more favorable tax rate for artisanal cigar manufacturers.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A5284