Cigarette Tax Revenues Just Ain't What They Used To Be

(selfnouveau / shutterstock)

Smoking, it'll kill you (even you, casual smoker). But before that it will bring in beaucoup bucks for the government thanks to hefty taxes—or will it? Pols keep raising and adding taxes on smokes here for the dual purpose of making money and pricing people out of their favorite addiction. Its worked pretty swell for a while now, but it seems that those days are ending. State tax collectors were "recently calling around to convenience-store owners, wondering what was up. The $130 million in extra tax that Albany was expecting from a change in the law about cigarette sales on Indian reservations wasn’t happening."

Basically the state was depending on millions in cash from a law that made it illegal for "licensed cigarette wholesalers in the state to sell untaxed name-brand cigarettes like Newport and Marlboro to Indian reservations." Which should have meant we'd see a bump in cigarette taxes last year. And yet, according to a memo the Post's John Crudele got his hands on, "cigarette tax revenues were flat this past October and November with the year before."

Which theoretically could leave Albany $130 million short on the $130 million they projected the new law would rake in. So good thing New York City is doing its best to keep its paws on as much smoke tax money as possible—most recently by closing down all those roll-your-own smoke shops?

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By Garth Johnston in News on January 12, 2012 1:20 PM

Comments [rss]

BottomlessChips

Pigouvian taxes don't work

AaronRed99

Black market. Stop harassing the bodegas.

randomtransplant

This seems to be more about Indian Reservations than NYC smokes.

Serves 'em right though - charging addicts more for the same drug you always sold them & running the competition out of town isn't "good health". Its being a dirty, exploitative dealer.

kimpossibble

Duel purpose?

Mordicai

The end of Empire or the end of Jedi?

Garth Johnston

whoops. thanks. fixed.

LICnative

When the taxes makes the legal purchase of any product unfeasable, people will use extra ordinary means to obtain what they want.

Nanny Bloomberg chased all those smokers to internet purchases, Indian reservations and the black market.

Actions have consequences.

pendejito

And Pennsylvania

etypical

totally agree. Why would I pay $12.50 at the bodega around the corner from me when for $2.00 I can get a ride van across the GWB and buy them for $6.50 from 7/11? A free ride back across the bridge bc drivers want car-poolers for the discount and I've made out like a bandit. Bloomberg might be rich but I prefer being crafty.

Mordicai

Yeah but wouldn't it be even easier to stop smoking?

da_phonz

I've tried, its really not that easy.

Mordicai

I know, sorry to be a dick-- they sold you addictive poison! That sucks.

Barricaded_EDP

That sounds like a lot to go through for $4, and a pack of smokes

etypical

I def. get more than a pack when I go and I work convenient to the GWB so I'm already pretty close. Combined with screwing over the city for $ it's a win-win.

m015094

If you find the need to buy packs in bulk (cartons I'm guessing) you're going to have a problem that is will cost you more than the $4 you save. - it's called lung cancer, emphysema, COPD, asthma, chronic bronchitis, peripheral artery disease, hypertension.

Enjoy.

etypical

wow, thanks, I had no idea. Let me know the next time you have a beer or some fries, I've got some crazy info for you on that stuff.

Roger_the_Shrubber

The city is screwing itself as is every government that goes hog wild with taxes.

Roger_the_Shrubber

I'm willing to bet he buys more than one pack per trip.

FU Boy

Jersey ain't far away - and smokes are dirt cheap.

Roger_the_Shrubber

Jersey aint far away....

Actually, it's off the coast of Normandy, quite a distance from here.

anyway, sounds like a Bon Jovi song.