Nevada Governor Joe Lombardo has signed A.B. 232 into law that implements a fifty-cent tax cap on premium cigars.

A.B. 232 was sponsored by Assemblymen Brian Hibbetts and Day Nguyen. With seven minutes left in the session, the Nevada Senate passed the cigar tax cap bill on an 18-3 vote following a 35-7 victory in the Nevada Assembly. PCA credits a coalition of locally owned small businesses that provided support and testimony that worked to advance the legislation, including Michael Frey; Malecon Tobacco, Jason Samuelson of Cigar Box; Michelle Runles of Tap N Ash Social Club; Shar Broumand of En Fuego Cigars & Lounge; Brad Mark of SMoK Cigar Lounge as well as Nevada lobbyist Mike Sullivan of The Ferraro Group.

In a statement, PCA Director of State Advocacy Glynn Loope wrote, “Nevada’s community tobacconists made the case in a manner that sets a national example. They built a bipartisan coalition of legislative support, made the case that the tax cap was a small business issue that would improve their competitive position, and discussed the impact on women and minority-owned small businesses at hearings. PCA welcomed the opportunity to provide committee testimony, grassroots advocacy, and research support on tax and public health issues. The local cigar shops of Nevada, though, made the difference.”

Michael Frey and Mike Sullivan of The Ferraro Group, who assisted efforts in the capitol, added, “This was a legislative effort to bring tax fairness to Nevada for a small segment of the local economy. We are certainly pleased that the Assembly and Senate supported the bill in such a bipartisan manner, and that the Governor recognized that with his signature on A.B. 232.”

Loope concluded by stating, “Having Nevada Governor Joe Lombardo, Montana Governor Greg Giaforte, North Dakota Governor Doug Burghum, and Idaho Governor Brad Little each sign significant premium cigar bills this year, is a testament to our industry message being heard. The partnership between PCA and our state retailers and the coalitions that have been built, has set an example for others throughout the nation. And, we’re not done yet.”

The bill is effective on July 1, 2023. Premium cigars distributed by trade shows, conventions, and other public events are exempt from this legislation.