After googling it, I found out that New York charges 37% tax on the wholesale price of cigars. So no, I don't know where 63% comes from. I would kindly ask them about it, does the total come out to about what you expect it to be?

About 90% of the stores that do a "buy X get 1 free," discount the cheapest cigar, so you're not getting ripped off in that reguard. Some places have been nice to me and discounted a mid-range cigar, but that is usually not the case.