New York City Smokers' Contributions to the City/State Economy-2001
There are approximately 1.3 million adult smokers in New York City. Here is what they already pay because they choose to buy a legal product:
Smokers Pay City Excise Taxes
$ 28,800,000
Smokers Pay City Sales Taxes
$ 68,400,000
Smokers Pay State Excise Taxes
$ 399,600,000
Smokers Pay State Sales Taxes
$ 64,800,000
Smokers Pay Tobacco Settlement Payments
$ 306,716,800
Total $ 868,316,800
Smokers'Economic/Tax Profile
Income
Smokers' median income 2000
$35,509
Median Income Smoker State Tax Liability
Annual state income tax liability for a couple
$ 1,386
Annual state income tax liability for a couple with two children
$ 1,250
Smoker Excise Tax/Sales Tax/Tobacco Settlement Payment Liability
Total average paid per New York City smoker in excise/sales taxes
$ 428
Cost per New York City smoker for settlement payments to New York
$ 234
Total annual payment per New York City smoker
$ 662
New York City Smoker Facts
New York City smoker payments of $868.3 million are equal to the following FY2002 budget amounts:
64% of the general corporation tax collected by the city 25% of general sales revenue
20% of New York City's personal income tax revenue
New York City smoker payments could fund the FY2002 budgets of:
The Department of Homeless Services ($548.8 million)
The New York, Queens, and Brooklyn libraries ($105.8 million)
The Department of Mental Health ($663.1 million)
Department of Youth and Community Development ($165 million)
The City University ($478.6 million)
CIGARETTES DON'T PAY TAXES - NEW YORK CITY SMOKERS DO!!
New York City Data Sources
Number of smokers (1,310,690)= Census Bureau 2000 New York City 18+ population (6,068,009) multiplied by CDC's 2000 percent of adults who are smokers in New York (21.6%).
Total packs sold in New York City = 360,000,000 (Orzechowski & Walker Tax Burden On Tobacco 2001 from New York City Department of Revenue). Derived by dividing New York City excise tax revenue by the excise tax rate per pack ($.08).
Total packs sold in New York = 890,100,000 (Orzechowski & Walker Tax Burden On Tobacco 2001 from New York Department of Revenue). Derived by dividing New York excise tax revenue by the excise tax rate per pack ($1.11).
New York City excise tax revenues = Orzechowski & Walker Tax Burden On Tobacco 2001 from New York City Department of Revenue.
New York City sales taxes = packs sold in New York City multiplied by sales tax rate (4.25% or $.19 per pack).
New York excise taxes = packs sold in New York City multiplied by state excise tax rate ($1.11 in 2001).
New York sales taxes = packs sold in New York City multiplied by sales tax rate (4% or $.18 per pack)
Tobacco Settlement Payments = [(Packs sold in New York City divided by packs sold in New York state) multiplied by settlement payments to New York state ($759.2 million in 2001 per Campaign for Tobacco Free Kids)].
Smokers' median income per CDC's Behavioral Risk Factor Surveillance System 2000, public use data.
Annual state income tax liability from PayBreeze software of General Programming, Inc., San Jose, California, which utilizes the Exact Calculation Method.
Total paid per New York City smoker excise & sales taxes = total excise and sales taxes paid ($561,600,000) divided by number of smokers (1,310,690)
Total paid per smoker for settlement payments to New York= New York City smokers' share of settlement payments to New York ($306,716,800) divided by number of New York City smokers (1,310,690).
New York City smoker facts from the city of New York, Executive Budget Fiscal Year 2003: Expense Revenue Contract, Online at
http://www.nyc.gov/html/omb/pdf/erc4_02a.pdf
and
http://www.nyc.gov/html/omb/pdf/erc4_02b.pdf
