Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
Blame Missing Cigarette Tax Revenues On Counterfeit Smokes
By
Garth Johnston
Published Jun 8, 2012
Modified Jun 8, 2012
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
By
Garth Johnston
Published Jun 8, 2012
Modified Jun 8, 2012
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
Way back in January New York State started getting nervous over a dramatic drop in cigarette tax revenues—more and more people are quitting smoking, sure, but with more than $100 million of expected revenues missing something was clearly up. Now we might have a bit of an answer: stores selling untaxed cigarettes or using counterfeit stamps to avoid the taxes.
According to the New York Post, "The Sheriff's unit of the city Finance Department that conducted a sweep of 1,700 stores licensed to sell tobacco products found an astounding 42 percent either peddling untaxed cigarettes or using counterfeit stamps to duck the combined $5.85 city-state tax." Which is a pretty impressively high number—and definitely helps explain why the tax revenues the city has dropped 56 percent from 2003 to just $69.8 million!
According to Finance Commissioner David Frankel, the sweep wasn't about making up extra money though—it was about fairness. "At a recent outreach event in The Bronx, I had a guy who came up to me desperate for help because his family’s delicatessen is going out of business because their competitors are selling illegal cigarettes and they refuse to do it," Frankel told the tabloid. Yup, we're sure that the crackdown had nothing to do with trying to find more money for the city in trying economic times while maintaining the highest cigarette prices in the land. Nothing at all.
Tagged
cigarette
cigarette taxes
revenue
smoke
taxes
Garth Johnston
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
5 men charged with trespassing in 2 Manhattan manhole cases
Two people who were found soaking wet and smelling of sewage say they went underground to look for jewelry, according to police and a criminal complaint.
By
Charles Lane
Published Oct 23, 2026 at 7:49 p.m. ET
6-year-old girl breaks leg after getting hit by falling bricks in Queens
The girl was walking with her mother in Maspeth on Thursday. The Department of Buildings cited the owner of a garage for “failure to maintain” it.
By
Charles Lane
News
6-year-old girl breaks leg after getting hit by falling bricks in Queens
The girl was walking with her mother in Maspeth on Thursday. The Department of Buildings cited the owner of a garage for “failure to maintain” it.
By
Charles Lane
Mamdani extends ban on permits for new street fairs due to NYPD overtime
By
Carol Chen
Inside the Midtown Bus Terminal rebuild: Decks over Lincoln Tunnel approach, a new park
By
Ramsey Khalifeh
Black couple seeking Queens apartment sues over racist text from broker
By
Brittany Kriegstein
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .