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New York raises cigarette tax $1.50 a pack
UPI ^ | 4/4/02 | Alex Cukan

Posted on 04/04/2002 7:26:31 AM PST by Tumbleweed_Connection

New Yorkers will have to shell out almost $6 for a pack of cigarettes as of Wednesday.

But if New York City Mayor Michael Bloomberg has his way, those in the Big Apple will pay $1.50 more per pack on top of the new rate.

"Raising revenues for the state and the city is important now, but because of the increase in the price of cigarettes there will (also) be a reduction in smoking that will save tens of thousands of lives," Assemblyman Richard Gottfried, a Democrat from New York City and chairman of the assembly health committee, told United Press International.

"The bill passed so quickly in January it didn't give the tobacco lobby much time for effective opposition, but even two years ago when we raised the cigarette tax it was as if it was a competition on who could propose the higher tax increase."

With a 39 cent tax increase, New York leads the country with the highest tax on cigarettes. After federal and city taxes are added, a pack of cigarettes can cost about $50. Twenty-five states are also considering raising taxes on cigarettes.

The state must close an almost $6 billion budget gap for the 2002-03 fiscal year. New York City is facing a more than $5 billion budget gap -- blamed on a loss of tax revenue because of a drop in consumer spending after Sept. 11 attacks on the World Trade Center.

In a deal negotiated by Gov. George E. Pataki, the state approved the Health Care Workforce Recruitment and Retention Act, a comprehensive plan to help hospitals, nursing homes and clinics recruit and retain a highly-trained workforce.

The initiative will be funded partially by the cigarette tax through the Health Care Reform Act, which is expected to raise more than $300 million a year from the cigarette tax increase.

"The new law addresses the national problem of health care workforce shortages," said Pataki. "Health care facilities will be able to increase salaries to make jobs more attractive, provide increased training for career ladder opportunities, or add benefits to hiring packages to help encourage workers to join the health care profession."

New York City currently collects 8 cents per pack. Proprietors of New York City small shops and beverage stores said they would mount a petition drive against Bloomberg's plan to boost the cigarette tax to $1.50. The city cigarette tax increase would require enabling legislation by the state Legislature.

"I think I would support the increase in raising the New York City tax on cigarettes because the city desperately needs the tax revenue," Gottfried said. "Taxing cigarettes, has been shown to result in less teens smoking. (And) using the increased funds to pay for health care off-budget is tremendously appealing."

Convenience stores and small shops have fought cigarette rate hikes for years, because they lose business traffic from cigarette buyers to neighboring states and Indian reservations after each hike.

According to the New York Association of Convenience Stores, business dropped by 20 percent after the last cigarette tax hike of 55 cents per pack in March 2000. According to Tobacco-Free New York, a 10 percent increase in cigarette prices will result in a 4 percent drop in cigarette consumption.

"The higher the cigarette tax is increased, the larger the incentive to evade the tax by buying from nearby states, from Indian reservations and via the Internet," Gottfried said. "However, we found in the cigarette tax increase two years ago, most people continue to purchase cigarettes in New York stores because of the convenience."

Because Indian reservations do not have to charge state taxes, highly-taxed items such as cigarettes and gasoline can be purchased at a considerable discount.

However, the Oneida Indian Nation in central New York is placing tobacco kiosks in a few Buffalo-area Yellow Goose convenience stores that would allow electronic mail ordering of tax-free cigarettes.

State officials said the tobacco kiosks could violate a current state law that prohibits the sale of cigarettes to minors via machines and that off-reservation non-Indian-owned retail outlets cannot sell tax-free cigarettes.


TOPICS: Culture/Society
KEYWORDS: 60carton; 6apack
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1 posted on 04/04/2002 7:26:31 AM PST by Tumbleweed_Connection
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To: Tumbleweed_Connection
Some related threads from yesterday...

Smokers stock up before tax increase: 39-cent hike goes into effect today

Indian kiosks put tax-free cigarettes online

2 posted on 04/04/2002 7:31:06 AM PST by Phantom Lord
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To: Tumbleweed_Connection
Great news for me....I can now make my monthly drive from Virginia to New York nicely profitable.

Thanks Bloomy!!!
3 posted on 04/04/2002 7:32:17 AM PST by wheezer
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To: Tumbleweed_Connection
If we are going to have any taxes, this is a GREAT one. Now if we can pass it on a federal level we can stop all the driving to the next state stuff.

IF YOU DON'T SMOKE, I WON'T THROW UP

4 posted on 04/04/2002 7:36:55 AM PST by Drango
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To: Drango
I don't understand your post. Please clarify.

And incase you are as ignorant as your post sounds, I am here to inform you that there is a federal tax on cigarettes.

5 posted on 04/04/2002 7:38:14 AM PST by Phantom Lord
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To: Phantom Lord
A federal tax ... enforced by none other than the caring, nurturing, and "for the children" Bureau of Alcohol, Tobacco and Firearms, the BATF. Affectionately known as F-Troop.
6 posted on 04/04/2002 7:41:02 AM PST by coloradan
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To: Drango
If we are going to have any taxes, this is a GREAT one. Now if we can pass it on a federal level we can stop all the driving to the next state stuff.

Freedom means that other people get to do fairly harmless things that you might not like.

Too many posters on FR who don't like Freedom lately.




7 posted on 04/04/2002 7:46:07 AM PST by Sabertooth
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To: Phantom Lord
State agents seize 3,200 cartons of contraband smokes

Yesterday's seizure represents more than $46,000 in lost cigarette taxes.

...

Currier said the state loses an estimated $105 million a year — which translated into 96.7 million packs in 2000 — to cigarette-tax evasion. Since January, when the tax on a pack of cigarettes went from 83¢ to $1.43, "more people have been heading over the border" to Oregon and Idaho to buy cigarettes, Currier said.

8 posted on 04/04/2002 7:53:15 AM PST by thatsnotnice
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To: Tumbleweed_Connection
Someone in NY said:

If you were to compare the facts currently you can purchase a 12 pack of beer for less money than one pack of cigarettes in NY State. Alcohol whose consumption is more deadly in the short time it remains in your system, to others around you than a pack of cigarettes. Statistically more people die in drunken driving related incidents than due to smoking related incidents.

9 posted on 04/04/2002 7:58:43 AM PST by SheLion
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To: Tumbleweed_Connection
a pack of cigarettes can cost about $50.

I think he meant a "carton." Not a pack.

10 posted on 04/04/2002 8:01:24 AM PST by SheLion
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To: thatsnotnice
We must put and end to the cigarette tax loophole!
11 posted on 04/04/2002 8:01:52 AM PST by Phantom Lord
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To: Tumbleweed_Connection
Great idea! That should really help the economy...well...it'll help organized crime, at least! :-P
12 posted on 04/04/2002 8:02:41 AM PST by B Knotts
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To: sultan88;Mudboy Slim;scholar
"New Yorkers will have to shell out almost $6 for a pack of cigarettes as of Wednesday. (!!)
But if New York City Mayor Michael Bloomberg has his way, those in the Big Apple will pay $1.50 more per pack on top of the new rate."

Now people, I ask you...
Does Bloomberg's running as a Republican make more sense, now?

I mean, this is totally LAUGHABLE.
The NYState RNC permitted this quisling into the party, with nary a peep; & now?
Which political party do we suppose will be blamed when the tobacco addicts go looking for someone to hang this on??
Hmmmmm??

Best part is, ALL NY 'Pubbies will *benefit* from this Republican Mayor's outrageous behaviors.
Yea...shnookered & sweet; porked by the Liberals!!
HA!!!
Actions &/or behaviors which are in reality long held Liberal policies, being spearheaded by this *Republican*??
HA!!

I swear; one couldn't make this stuff up even if they wanted to unless they were Liberal.

Republican *leadership* are simply the biggest dumbasses there are; with only those of us who vote 'em into office, dumber yet. :o)
~& btw...I don't smoke anything, either.
So I really couldn't care less if the cost per/pack hits a cool million; really.
It's just that who'll be blamed, & look how *easy* they pulled this off.

As conservatives, we're truly doomed.

13 posted on 04/04/2002 8:10:48 AM PST by Landru
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To: Drango
And if you don't quit posting this nonsense, I will throw up.
An anti-smoking terrorist! BTW, I don't smoke.
14 posted on 04/04/2002 8:15:51 AM PST by poet
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To: Drango
"If we are going to have any taxes, this is a GREAT one"

Hey smoking nazi, do you know who has made the most money on sales of cigarettes over the last 25 years? Not the cigarette makers. The US goverment. The taxes on cigarettes are higher than the profit from the sale. Do you see anyone suing the US goverment for all the cigarette deaths? Nooooooooooooooo! When they start taxing your ammo at these rates, don't come boo hooing to me.

15 posted on 04/04/2002 8:16:47 AM PST by ScreamingFist
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To: SheLion
a pack of cigarettes can cost about $50.

We can only hope...

IF YOU DON'T SMOKE, I WON'T THROW UP.

16 posted on 04/04/2002 8:19:52 AM PST by Drango
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To: ScreamingFist
I read somewhere, where California wants to tax bullets at 5 cents each. It never stops, does it....
17 posted on 04/04/2002 8:19:56 AM PST by SheLion
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To: Drango
I won't look at you so "I" don't throw up. Grow up!
18 posted on 04/04/2002 8:20:55 AM PST by SheLion
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To: Tumbleweed_Connection
In a deal negotiated by Gov. George E. Pataki, the state approved the Health Care Workforce Recruitment and Retention Act, a comprehensive plan to help hospitals, nursing homes and clinics recruit and retain a highly-trained workforce.

The initiative will be funded partially by the cigarette tax through the Health Care Reform Act, which is expected to raise more than $300 million a year from the cigarette tax increase.

I just heard a report on the radio yesterday about how tobacco lawsuit settlements are being borrowed against by state governments in lieu of actual payment - to be used for everything BUT health programs.

But I'm sure all these tax dollars raised will find their way to the right place. Yup. Riiiight.

19 posted on 04/04/2002 8:25:59 AM PST by dbwz
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To: ScreamingFist
I don't smoke nor drink through choice. Hubby does both. We have an agreement, he can smoke in any room in the house BUT our bedroom. I support his right to smoke or take a drink. Just because I choose not to doesn't mean I should harass him about his choice. He doesn't harass me on my addiction...sweets.
20 posted on 04/04/2002 8:27:52 AM PST by GailA
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