I agree with what Pete said. I'm not sure which store in NY it was, but cigar tax in NY is now at 75%. I don't know what the wholesale price of the cigar in question is, but lets say for arguement's sake it's $200. Add 75% to that and you have $350. Retail Mark up...add another $150 or so (or whatever the retailer marks them up for) and you're at $500. Add 8.75% sales tax and you're just under $545 for the box.
Compare that to a state like Florida or PA with very low or no tobacco tax and it's very easy to say someone is gouging when, in fact, they aren't. Remember, MSRP is just a suggestion. It doesn't take into account tobacco tax for each state.