This past week, State of North Carolina passed an Appropriations Bill which was signed into law by Governor Roy Cooper. In part of the bill, there is language that creates a 30 cent tax cap on the sale of premium cigars.

The Premium Cigar Association and North Carolina Premium Cigar Association wasted no time in promoting the bill.

“On behalf of the community 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,” commented Craig Cass, owner of Tinder Box of the Carolinas, in a statement sent by the Premium Cigar Association.

Glynn Loope, Director of State Advocacy for the PCA, added, “This approval of a new tax cap on premium cigars in North Carolina 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 in North Carolina on the heals [sic] of the Michigan approval, in indeed a message to legislatures throughout the nation.”

The tax cap goes into effect on July 1, 2022.