From Coughers to Coffers, Smoke Tax Increases

An additional $1.25-a-pack tax on cigarettes goes into effect Tuesday, meaning that a carton of name brand smokes will cost a staggering $85. If the average cost of a box of premium brand cigarettes rises to $8.50, 50% of that cost is directly related to taxes ($2.75 to the State, $1.50 to the City).

The Center for a Tobacco Free New York hopes that the latest tax increase will cause another 6% of the state's smokers to quit, although critics say that the additional cost will just push more people into the black market for cigarettes or to Indian Reservations.

Mayor Bloomberg has declared Tuesday "NYC Quits Day," and the Dept. of Health will be distributing smoking cessation products and information urging smokers to kick the habit. There's even a breakdown of what a smoker could buy if he/she quit a pack a day habit (that means saving $240/month or $3000/year), including "Rent an apartment with one additional bedroom." And then, of course, there are the health benefits to not smoking.

Recently, the City started running an ad campaign aiming to scare the hell out of smokers by featuring disfigured people who attributed their injuries to years of smoking.

What's Going on Over There?, by Insomnia Jones J.D. at flickr

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By Dave Hogarty in News on June 1, 2008 10:00 AM

Comments [rss]

MarygraceNYC

This is so out of control. I have been smoking since it was 50 cents a pack. Road trips down south and internet overseas purchases are a must. I don't understand why NY is anti-smoking. From the bars and restaurants to the tax. They should put that same tax on liquor and all luxury items as well. Lets see how the rest of the population reacts. It would be fair if everyone was targeted and not just one group. If I want to smoke then it is my right to. It is my body and my health. They are succeeding in making criminals out of us!! It is an addiction you know!

sonyactivision

Taking Route 13 through scenic Delaware, the Virginia state line is 220 miles away. Carpool for this one, kids, and make a roadtrip of it.

EastRiver

Because the 8.375% is a total of the state and city tax; Amazon doesn't even have any presence in New York.

That doesn't even begin to answer the question. Try again. I didn't ask under what legal argument were the companies not required to collect the tax. I asked why we should have two different standards in the first place. If your only justification is the Constitution I would suggest the following:

The Supreme Court decision that affirmed out of state retailers don't have to collect sales tax was written about 40 years ago. They upheld it again in 1991 but specifically outlined how Congress could give the power to collect sales tax to the states. If Congress did this what would you argument be then?

99centmenu

cool. it's only another buck.

i'll smoke twice as much for you, new york city.

tch

Why is it ridiculous? Why should it be possible to buy the exact same item tax free online that you would have to pay 8.375% at a store?

Because the 8.375% is a total of the state and city tax; Amazon doesn't even have any presence in New York.

ed_Extinct

the black market just got bigger.

EastRiver

As for the internet tax, THAT is really ridiculous.

Why is it ridiculous? Why should it be possible to buy the exact same item tax free online that you would have to pay 8.375% at a store?

solidago

This will probably help me stay on the wagon. New York is ridiculous w/r/t taxes, but putting a hefty tax on cigarettes seems like a good policy choice to me. That said, as pointed out in some paper a little while back though, it may simply make the bootlegging business more lucrative.

As for the internet tax, THAT is really ridiculous.

Steven

Don't forget about the new tax for newegg and amazon which starts today.

bornbrednewyorker

SimonLok I agree with your comments. I've never smoked a cigarette in my life and I think this is another outrageous tax. Tax Tax Tax it never ends. Now be prepared for a slew of people shouldn't smoke responses...

SimonLok

i have no love for cigarettes, but the pattern in ny continues, tax the hell out of everyone - do nothing about the waste in spending. they tell us the increased costs will make people stop, then they take the money and add to the bloated govt. if the revenues do go down, the bloat stays and regular taxes increase to pay for it. i really cant stand the way the city and state is run.