New York Smokers Slammed by Tax

Albany, N.Y., July 8, 2010 -- New York Governor David Paterson recently signed into law a $1.60 per-pack tax increase on cigarettes as a budget-extending measure to help relieve the Empire State's current fiscal shortfall. The increase went into effect July 1.

At present, New York State's tax on a pack of cigarettes totals a whopping $4.35, making the average price per pack around $9.20. The burden is heaviest on smokers who purchase cigarettes in New York City, which enforces its own cigarette tax. Customers in the five boroughs are paying anywhere from $11 to $15 per pack -- and many convenience store owners and other retailers have been fuming at their lost business since the latest tax increase went into effect.

Meanwhile, "freelance" cigarette salesmen were reportedly doing a brisk business on Manhattan streets, hawking discounted packs and "loosies" (single cigarettes).

The state will also attempt to collect sales tax on cigarettes sold on Native American reservations to "visitors," setting a target date of September 1 to commence enforcement.

Consumers of smokeless tobacco and cigars were also hit by a tax increase. Beginning August 1, the tax on snuff and chewing tobacco will more than double from 96 cents per ounce to $2.00, while the wholesale tax on cigars jumps to 75 percent from 46 percent.

However, Gov. Paterson's proposed tax increase on soft drinks and other sugar-sweetened beverages was not included in his budget -- mainly because of strong opposition from the American Beverage Association, New York retailers and tax-reform advocates.

Paterson had proposed a one-cent per fluid-ounce tax on sugar-sweetened beverages.