FLASHBACK, 2010: NY Dems Put $5.85 Tax On Pack Of Cigarettes, Stores Warn Poor Blacks Will Have To “Buy From Untaxed Sources”

12/4/2014

Excerpted from Bloomberg: New York smokers started paying the highest cigarette taxes in the U.S. today after an increase of 58 percent pushed some prices to almost $11 a pack.

The average price in New York City, the largest in the U.S. by population, rose to $10.80, according to Erik Kriss, a spokesman for the state Division of Budget. Outside of the city, which imposes its own tax, the state average price is $8.92.

New York led Hawaii, New Mexico, South Carolina and Utah in raising cigarette taxes today. Health advocates cheered the increases as a means to reduce smoking. Tobacco producers and retailers said higher taxes encourage black-market sales and won’t generate anticipated revenue.

“A few people will quit smoking, but many more will quit coming to our stores and instead buy cigarettes from untaxed sources,” Jim Calvin, president of the New York Association of Convenience Stores, said today by telephone from Albany. The group represents operators of 7,500 convenience stores.

New York lawmakers boosted the state’s portion of the tax to $5.85 a pack from $4.25 in New York City. Outside the city, the tax rose to $4.35 a pack from $2.75. The tax increase is projected to raise $290 million a year from cigarettes, snuff, cigars and other tobacco products. Collecting taxes on cigarette sales from Indian reservations would raise another $150 million.

‘Legal Addictions’

“It’s the state trying to get money from legal addictions,” said Joseph Bavaro, 21, who said he’s smoked for seven years. “It’s for the greater good, but it’s bad to take advantage of addicts.”

New York ranked 14th among U.S. states in pack sales of cigarettes last year, according to the Campaign for Tobacco-Free Kids, an advocacy group in Washington. New Yorkers bought 482.7 million packs, accounting for 2.9 percent of U.S. sales.

“I think it’s horrible,” said Randi Gelman, 44, a New York travel agent. “We know it’s bad for us. People are out of work, no jobs, now this? It’s not fair. This is just a way for the government to make back money from working people after years of stupid decisions.” Keep reading

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