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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

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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To: Tumbleweed_Connection
The Mohawk Nation out of Masseena (Sp.?) New York ought to love this. About 10 or 15 years ago, Canada raised the taxes on their cigarettes through the roof. The mob teamed up with the Mohawk nation to smuggle cigarettes through tribal lands and into Canada. Apparently, Indians get cigarettes duty free.

Pretty soon this turned into a multi million dollar operation. They soon expanded into smuggling duty free alcohol. Eventually this border town became known as a giant gaping point of entry from Canada into the U.S. because of the jurisdictional issues raised by the tribal land status. The Russian Mafia, Chineese Triad members, and even Islamic terrorists come into Canada through Vancouver where the mob controls the docks, drive across hockeyland, and go through Masseena (Sp.?)into the U.S. There is even a rumor that a nuclear or biological weapon made it through there in 2000.

If memory serves me correctly, there was a big shootout and standoff 6 or 7 years ago between the Mohawk Nation and a combined force of ATF, FBI, NY State Troopers, and the dreaded Mounties. I even think one of the Mounties was killed.

Ah, the law of unintended consequences, ain't it ironic.

21 posted on 04/04/2002 8:30:30 AM PST by MattinNJ
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To: wheezer
I absolutly agree. The higher the tax, the more profit I make on the black market.

Way to go New York!

22 posted on 04/04/2002 8:32:05 AM PST by Hunble
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To: Drango
Now if we can pass it on a federal level we can stop all the driving to the next state stuff.

Fear not! Those benevolent extortionists you're cheering on will be raising gas taxes to obscene levels as well.

23 posted on 04/04/2002 8:33:54 AM PST by dbwz
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To: Tumbleweed_Connection
New York to Organized Crime: "We miss you! Please come back! We have a business opportunity for you!"
24 posted on 04/04/2002 8:35:47 AM PST by freedomcrusader
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To: MattinNJ
If memory serves me correctly, there was a big shootout and standoff 6 or 7 years ago between the Mohawk Nation and a combined force of ATF, FBI, NY State Troopers, and the dreaded Mounties. I even think one of the Mounties was killed.

You must be referring to the incident in Oka, Quebec about ten years ago. Only Canadian police were involved in that one, and it had nothing to do with cigarettes. I believe the Quebec government wanted to build a golf course on some tribal burial grounds.

If I remember correctly, the Mountie who was killed was shot by friendly fire.

25 posted on 04/04/2002 8:42:11 AM PST by Alberta's Child
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To: Landru
"..."Republican *leadership*..."

That would be an oxymoron, eh?

26 posted on 04/04/2002 8:43:15 AM PST by sultan88
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To: SheLion
Shhhh!!!

Don't stir them up!


27 posted on 04/04/2002 8:45:34 AM PST by StriperSniper
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To: sultan88
So according to this article, a pack of cigarettes will cost $6.00 plus $1.50, or $7.50???

What's a "normal" price for a pack of cigarettes? (I don't smoke)

Sheesh, at those prices, I don't understand how anyone could afford to smoke........

28 posted on 04/04/2002 8:49:20 AM PST by RooRoobird14
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To: Tumbleweed_Connection
Although I know nothing about the price of marijuana, is the legal price of tobacco approaching the illegal price of marijuana?
29 posted on 04/04/2002 8:51:59 AM PST by Biblebelter
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To: Biblebelter
I would think that it's getting awfully close.
30 posted on 04/04/2002 8:59:54 AM PST by Just another Joe
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To: Tumbleweed_Connection
Lets see how well they can collect tax on black market cigarettes. The open market sales will go down to about a pack a week, so a $1.50 will not mean much.
31 posted on 04/04/2002 9:00:26 AM PST by Texbob
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To: Alberta's Child
Yes, I believe you are right. Thanks.
32 posted on 04/04/2002 9:07:47 AM PST by MattinNJ
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To: Drango
IF YOU DON'T SMOKE, I WON'T THROW UP.

Sounds good to me....I smoke - you puke, and we're both happy.
33 posted on 04/04/2002 9:23:13 AM PST by wheezer
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To: Tumbleweed_Connection
Not nearly enough. The NY tax on cigarettes will be eleventy-skadillion trillion zillion dollars per molecule of nicotene, and then that STILL won't be enough, they will want all of Israel for every cigarette you smoke, and then that STILL won't be enough.
34 posted on 04/04/2002 9:25:32 AM PST by Lazamataz
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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.

Right! Then we can have a War on Cigarettes with piss testing and mandatory forfieture and midnight no-knock raids and nicotine checkpoints and everything! That's gonna be COOL!

35 posted on 04/04/2002 9:28:13 AM PST by Lazamataz
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To: Lazamataz
"The state must close an almost $6 billion budget gap for the 2002-03 fiscal year".

I don't know how many times I have to point this out.It's THEIR (Elected Officials) Damn SPENDING that should be held in check.
"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."Oh yeah and $300,000,000 is going to help you do THAT?Barbra Streisand Barbra Steisand Barbra Streisand!

36 posted on 04/04/2002 11:52:25 AM PST by Pagey
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To: Pagey
"The state must close an almost $6 billion budget gap for the 2002-03 fiscal year".

Part of the reason they are finding a big budget gap is because of me and people like myself. I made a large salary in NY and used very few services, but because of the gun laws and the crappy liberal politicians and the high taxes, I left the state last year.

37 posted on 04/04/2002 11:55:02 AM PST by Lazamataz
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To: Lazamataz
because of the gun laws and the crappy liberal politicians and the high taxes, I left the state last year.


That is so great to hear.People talk about doing things like that but never act.If my business moved to Nevada,I'd go with it in a flash.What I'd give to smoke immediately after dinner w/ out having to go outside.It's amazing you can smoke inside in reataurants in Oregon,but I couldn't move there.Here in Ca.,The restaurants where I can do this,are few and far between,but they get my regular business, or we sit on the Patios,which provide great ocean views wherever you eat.Damn The California Laws!

38 posted on 04/04/2002 12:09:49 PM PST by Pagey
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To: RooRoobird14
I haven't priced them. I don't smoke either.
39 posted on 04/04/2002 1:18:05 PM PST by sultan88
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To: Pagey
Here in Ca.,The restaurants where I can do this,are few and far between,but they get my regular business, or we sit on the Patios,which provide great ocean views wherever you eat.Damn The California Laws!

I sure don't support many California laws but I like this one. 98% of smokers claim they are considerate of non-smokers but time and time again I had the quality of my restaurant meal go into the ashtray 'cause some smoker was being inconsiderate. Yeah, call me intolerant...

My love for property rights is exceeded only by my disdain for inconsiderate smokers.

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

40 posted on 04/04/2002 1:24:29 PM PST by Drango
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To: Biblebelter
I would say, ounce per ounce, that a pack of 20 marijuana cigarettes (same size) would be about 25-65$. But a typical marijuana addict would take a few days to a week to finish that pack. So comparing for usage, there would be little difference in cost to support each habit.
41 posted on 04/04/2002 1:35:17 PM PST by stands2reason
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To: Tumbleweed_Connection
hi tumbleweed
thanks for posting article
I am cigarette smoker
I think us cig smokers are bein' screwed by government
We gave away all our power to government, I want us to take it back
Love, Palo
42 posted on 04/04/2002 1:44:28 PM PST by palo verde
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