Update:
Looks like the whole thing happened because a Judge got upset at the attitude of one of the owners and decided to flex some judicial muscle on the shop. Guess the state is trying to accuse the shop of tax evasion, which is funny seeing as how they have gone over the shops books several times in the last 8 months. Think they would have found something by now.
Anyway, at a hearing one of the owners lost his temper at all the harassment they have been getting and the judge did not like the outburst, so he signed a warrant to take their computers, cash drawer, credit card reader, and pretty much anything else that was not nailed down on the front counter. Shame that a judge can put someone out of business because they personally do not like them.
The shop is open to members only right now. Cash and check only since the credit card terminal was taken. The owners are looking at taking the shop 100% private and having all their tobacco business conducted online. They will open a shop in a cigar friendly state and members can order their cigars online (and minus the 120% tax) from the out of state shop. This will eliminate the hassle from the Muni and the state as well as cost both all the tax money they have been getting from the shop. Only things that will be carried in the shop will be accessories and locker rental, none of which is taxed.