PCA Applauds Governor Grisham’s Veto of Harmful Cigar Tax Increase in New Mexico

Washington, D.C. – The Premium Cigar Association (PCA) today expressed its appreciation to Governor Michelle Lujan Grisham for vetoing the harmful 25% cigar tax hike in H.B. 547. The veto shields New Mexico premium cigar retailers from the adverse consequences such a drastic tax increase would have on their business.

PCA Director of State Advocacy, Glynn Loope, said, “We are grateful to Governor Grisham for recognizing the impact this tax increase would have had on small businesses and consumers in New Mexico, especially during these challenging times. Her decision to veto the cigar tax will undoubtedly work to keep sales of premium cigars in New Mexico.”

However, actions by the legislature to strip the cigar tax cap during the session need to be addressed. Loope stated, “Last week, I spoke to the Governor’s Office on this issue. Procedurally, her hands were tied. We look forward to working with the Governor’s Office and legislative allies to revisit this matter in the 2024 session.” 

Loope continued, “We are pleased that the legislation that would have banned flavored tobacco products, as well as legislation that would have granted local governments sweeping authority over tobacco products failed to advance. We appreciate all of our premium cigar advocates, both retailers and consumers alike, who let their voices be heard on these issues.”

PCA represents over 3,000 members nationwide, including retailers, manufacturers, and distributors of premium cigars, and works to protect the interests of the premium cigar industry. The association has been advocating for the protection of premium cigars from harmful regulation, taxes, and other measures that threaten the industry.