New York State has changed the status of cigarette-sized cigars and will tax them at the same rate as cigarettes.

Little cigars will be defined as cigarettes. The cigarette tax approved in the state budget is raised from USD 1.50 (EUR 0.95) per pack to USD 2.75 per pack, making it the highest cigarette tax in the country. This increase, which will take effect on 1 July, will also apply to little cigars.
So far, little cigars are taxed at a rate of 30 cents per pack. Previously, little cigars came under the definition of tobacco products, where premium cigars are classified, and were taxed at 37 per cent of the wholesale price.
The New York state government is expecting the tax hike to generate USD 3.6 million in revenue from 2008 to 2009. (pi)