Legal aspects forum: NY raises tobacco taxes

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Val
Jun 23, 2010 12:10 AM CST
Name: Val
Ohio
NY state is raising all of their state taxes for tobacco. For a pre-made pack of cigarettes, there will be an additional $1.60 added per pack (in addition to the current state per pack tax of $2.75 and an additional $1,50 tax if you're in NYC). That will bring the state taxes per pack up to $4.35 ($5.85 in NYC).

Of course this doesn't include the $1.01 fed tax or sales tax.

http://www.nytimes.com/2010/06/22/nyregion/22budget.html?src...

They are raising the taxes on all types of tobacco (cigars, smokeless, pipe, etc) but since most people smoke the pre-mades, I only gave info on that.
Val
Jun 23, 2010 12:21 AM CST
Name: Val
Ohio
In the article, they say that raising the tobacco taxes will bring in more money. Yet they also say that raising the tobacco taxes will cause people to quit using tobacco. If more people quit using tobacco, how will they bring in more money?

They also say that it might cause a rise in black market tobacco. Wouldn't that also cause less revenue since formerly law-abiding, tax-paying citizens might be buying on the black market and not paying taxes anymore? Also, if the black market gets worse, how are they going to fund chasing after all these new law-breakers?

And the fight with the reservations ought to be interesting.......
Imagezuzu
Jun 23, 2010 1:02 AM CST
Name: Zuzu
Northern California
zone 9
That increase is just outrageous, and their convoluted thinking is even more outrageous. I'm wholly in favor of black-market tobacco products. I hope the black market thrives here.
Val
Jun 23, 2010 1:30 AM CST
Name: Val
Ohio
With taxes like these, they are inviting the black market to flourish. I know of several people who currently drive from NY to PA for cigs. PA only has a state tax of $1.60 a pack. That's a savings of $27.50 for every carton ($42.50 in NYC).

I read an article on the black market a few months ago where it said that people were driving down to Virginia and taking the cigarettes back to New York. Virginia only has a $0.30 state tax per pack. That would be a savings of $40.50 for every carton ($55.50 in NYC).

There's going to be a healthy black market considering the potential profits.

For information about each state's tax rates:
http://www.ncsl.org/IssuesResearch/Health/StateCigaretteExci...

The sad part about the black market is that tobacco will be much easier for teens to get. After all, a dealer doesn't ID before selling. So the crap about the states wanting to do this "for the children" will have the opposite effect. Teens will be able to get it a lot easier on the black market than in a store. Cheaper too, since dealers won't gouge their customers as much as the government.
Imagezuzu
Jun 23, 2010 1:41 AM CST
Name: Zuzu
Northern California
zone 9
That data sheet is so amazing: We always have complained bitterly about the taxes in California, but other states have it so much worse.
ImageJoy
Jun 23, 2010 7:14 AM CST
Name: Joy Wooldridge
Kalama, Wa. Zone 8b
Cigarettes in Washington state recently took it's steepest tax jump to date. Cartons jumped from $65.00 to $85.00 seemingly overnight. This just seems like over kill to me. I think you're right, we are going to be seeing a healthy black market and it will worsen all the problems they claim the are trying to fix with the tax increases.
I'm within a 30 minute drive to Oregon where their prices are high, but not as high as the state I live in, at least for now.
"Spring is Nature's Way of Saying, 'Let's Party!'" - Robin Williams
Imagetaters55
Aug 1, 2011 7:45 AM CST
Name: Linda Cartwright
Del Rio, Texas
Wow, and I thought our price of about $55.00 per carton was bad!
A Crafty Cubit
Dream as if you'll live forever. Live as if you'll die today. James Dean

Val
Aug 2, 2011 10:57 AM CST
Name: Val
Ohio
I was looking at the carton prices today ($50 to $55). That seems so expensive. It's been a long time since I've paid a lot to smoke. I'm still making my own for about $15 a carton. If I ever had to pay carton prices, it would mean a major change in my discretionary income (meaning NO discretionary income)

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