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Cigarette Tax To Be Voted On Any Minute Now
By
Jaya Saxena
Published Jun 21, 2010
Modified Jun 21, 2010
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By
Jaya Saxena
Published Jun 21, 2010
Modified Jun 21, 2010
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Lawmakers are expected to vote today on a budget extender bill which includes adding a new $1.60 state tax to packs of cigarettes. Taxes on other tobacco products would also increase from 46% of the wholesale price to 75%, and, sorry smokers, packs sold on Indian reservations in the state will not be immune. If passed, the tax could raise an estimated $440 million for the state (up from the $290 million estimation this weekend). But many smokers and tobacco merchants are upset at the proposed tax hike.
"I don't think it's really fair to just attack the smokers," West Harrison resident Darlene O'Keeffe told WCBS, and business owners say the taxes are so high it may put some people out of business. Tobacconist George Vasquez said, "Right now, we're paying 46 percent state tax, and they want to bring it up to 90 [percent]. I think that will put a lot of...people into the unemployment line." State Republicans have said they will not support any emergency bill that involves raising taxes, but the consequence could be a dreaded Albany shutdown.
If the bill passes, the state would also attempt to curb New Yorkers from avoiding the taxes by buying cigarettes online. The Department of Taxation and Finance has already collected over $3 million from New Yorkers trying to avoid the taxes in the past four years, billing 7,780 NYC residents. They will presumably step up their efforts if the city's packs reach up to $11.
Tagged
Albany
albany shutdown
budget
budget extender
budget woes
cigarette tax
cigarettes
tax hike
tobacco
Jaya Saxena
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