New York Senate Bill S00093

New York 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• Refer: 1/7/26

Caption

Provides that the tax on cigars and premium cigars shall be at the rate of seventy-five percent of the wholesale price or fifty cents, whichever is less, and is intended to be imposed only once upon the sale of any cigars or premium cigars; makes related provisions.

Summary

This bill amends New York’s tax law to create a specific definition of “premium cigar” and to set a new excise tax rate for cigars and premium cigars. Under the proposal, premium cigars must meet detailed product standards, including being handmade or hand rolled, wrapped in whole tobacco leaf, containing a 100% leaf tobacco binder, having at least 50% long-leaf tobacco filler by weight, and containing no characterizing flavor other than tobacco or non-tobacco additives. The bill also changes the tobacco products tax structure by providing that cigars and premium cigars would be taxed at 75% of the wholesale price or 50 cents per cigar, whichever is less, and that the tax is imposed only once on the sale of those products. It separately clarifies that the existing 75% wholesale tax on other tobacco products does not apply to cigars, premium cigars, snuff, and little cigars. The measure would take effect immediately if enacted.

Impact

The bill would amend sections 470 and 471-b of the Tax Law, adding a statutory definition of premium cigar and creating a distinct excise tax rule for cigars and premium cigars. In practical terms, it would affect tobacco manufacturers, wholesalers, distributors, and retailers by changing how cigar products are classified and taxed in New York, and it could alter the tax burden on higher-priced cigars by capping the tax at 50 cents per cigar when that is less than 75% of wholesale price.

Sentiment

No committee transcript or recorded vote information was provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text alone, the proposal appears to be a technical tax classification and rate adjustment rather than a broader policy overhaul.

Contention

The main likely point of contention is the tax treatment of cigars versus other tobacco products, especially whether premium cigars should receive a separate, potentially lower per-unit tax cap. Another possible issue is the detailed definition of “premium cigar,” which could affect which products qualify and may be important to manufacturers, retailers, and tax administrators. Because no discussion or vote history is included, no specific lawmakers or stakeholder positions can be identified from the record provided.