The city's Law Department has filed two more lawsuits against stores that exploit a perceived loophole in the city's obscene cigarette tax law. You'll recall that New York Smokes, a retail tobacco outlet on Staten Island, was making bank selling customers loose tobacco, which is taxed at a far lower rate than cigarettes. Customers would then roll their own smokes in the store using cigarette stuffing machines, walking out with a pack for about $6—far less than the average $13 price. But then the city cracked down on that enterprise, and now the guv'ment is going after two more shops. more ›

Last month The New Yorker published a funny story about a retail tobacco outlet on Staten Island and the Lower East Side that's been exploiting a perceived loophole in the city's cigarette tax law. At Island Tobacco, customers can get a pack of smokes that normally cost $13 for just $6—or less. The store does this by requiring smokers to roll their own coffin nails using on-site cigarette stuffing machines. Island Tobacco's owners contend that this allows them to sell products as loose tobacco, which is taxed at a lower rate. But the city begs to differ, and the law department is going after the company! more ›

In this week's New Yorker, Benjamin Shapiro files a funny story about a retail tobacco outlet on Staten Island and the Lower East Side that's been exploiting a perceived loophole in the city's obscene cigarette tax law. At Island Tobacco, customers can get a pack of smokes that normally cost $13 for $6—or less. The store does this by requiring smokers—aka the 14%—to roll their own coffin nails using on-site cigarette stuffing machines. Island Tobacco's owners contend that this allows them to sell products as loose tobacco, which is taxed at a lower rate. more ›

We all know that cigarettes are very expensive in New York, thanks to another $1.60 state tax imposed last year, which prompts some smokers to head to cheaper pastures. One gas station on the border of New York and Connecticut has now taken an ingenious approach: Put an ice cream truck selling smokes on the Connecticut part of its property. more ›

Before the $1.60-a-pack tax hike on cigarettes took its devastation hold, Budget Director Robert Megna said, "Increasing the price hopefully gets people to stop using the products. An added benefit to that is we raise revenue." Well, one of those scenarios might be true. Following the trend started in July, data show that sales of taxed cigarettes have dropped 27% since the new taxes went into effect, with retailers selling an average of 30 million packs per months, 11 million fewer packs than before the new tax. Time for a little cigarette math! more ›

So, when Indian chiefs denounce the state's plan to collect taxes on their cigarettes as an act of war, one Indian nation takes the Governor to federal court to block tax collection, and the Governor predicts a violent "uprising" when the times comes to collect, what would you predict would happen on Indian reservations when nobody is looking? Is it that they would continue to sell untaxed cigarettes? Surely, you jest. more ›

Indians in New York, upset with Governor Paterson's attempt to tax cigarettes on Indian reservation, held protests and rallies yesterday. The Post reports that they are on...the "warpath: "Dozens of Native Americans -- including one brandishing a sign showing Paterson, a handgun and the words "I'm Hunting Indians. You See Any?" -- rallied on the side of the Thruway yesterday to protest the governor's plan to tax cigarettes on Indian reservations." more ›

Throwing a wrench in Governor Paterson's plan to collect cigarette taxes on cigarettes from Indian Tribes starting today, a Buffalo judge ruled yesterday that the Seneca and Cayuga tribes would not have to pay cigarette sales taxes for at least two weeks. But that doesn't mean all tribes are safe. Paterson spokeswoman Jessica Bassett told the Times Union that "it will be against the law for licensed stamping agents to sell unstamped cigarettes to any nation or tribe other than the Seneca and Cayuga." more ›

With Bloomberg already besieged by protests and angry letters calling for an apology over his offensive "cowboys and Indians" statement, Governor Paterson says he is worried about possible "violence and death" over the state's plan to collect taxes on cigarettes sold on Indian reservations. Paterson said, "There will be quite an uprising and protest to this, but I am going to maintain this policy...The state police tell us over and over again that there could be violence and death as a result of some of the measures we're taking." more ›

It looks like Mayor Bloomberg is standing by his cowboys and Indians statement, despite the hot water it's gotten him into with the Seneca Indian Nation. Now, multiple tribes are planning a rally on Monday to "demand an apology and voice our position on this issue." Brian Patterson, president of the United South and Eastern Tribes, wrote to Bloomberg, "Your comment was a throwback to an earlier time when matters of rights were settled at a point of a gun," and an Oneida leader wrote that his comments were equivalent to encouraging politicians to "wear a red armband and hold a shotgun" to confront Jewish people. more ›

Last week, Bloomberg suggested that Governor Paterson get tough with Indian reservations who continue to sell cigarettes tax-free, saying, “I said to David Paterson, I said, ‘You know, get yourself a cowboy hat and a shotgun.' " As you might imagine, the Seneca Indian Nation is now on the warpath. more ›

One mugger and another mugging victim seem to realize the value of a good cigarette these days. On Tuesday, a career criminal was busted in Staten Island after demanding an off-duty cop buy him cigarettes. Antwan Webb and the cop had gotten into a car accident, and Webb yelled, "Take out your wallet, and give me your money. You are buying me a pack of cigarettes." The off-duty cop refused, and Webb punched him in the face. Unfortunately, with the city broke and in need of a nicotine fix, these crimes are becoming a bit more common. more ›

Perhaps in hopes of increasing the state's revenue a bit more, Bloomberg says Paterson needs to "cowboy up" when it comes to cigarette taxes, and fight Indian reservations who continue to sell smokes tax-free. Though one Indian chief previously said enforcement would be considered an act of war, Bloomberg ignored the threat (and political correctness) on his radio show, saying, “I said to David Paterson, I said, ‘You know, get yourself a cowboy hat and a shotgun. If there’s ever a great video it’s you standing in the middle of the New York State Thruway saying you know read my lips, the law of the land is this and we're going to enforce the law.'" The statement didn't sit too well with some tribes. more ›

The go-to plan for cash-strapped states—an increase in the tax on cigarettes—has some holes in it. In July, the New York State cigarette tax was increased to $4.35 a pack, which becomes $5.85 when combined with the city's own levy. However, the Post reports that revenue from cigarette sales was only $125 million last month, compared to $119 million from the same month a year before—hardly equivalent to the 58% increase in tax, and barely helpful to the $9.2 billion state budget deficit. more ›

Looks like the terrorists might be winning: New Yorkers are starting to go elsewhere to get their smokes. Some have found that they can save nearly $4 a pack by heading to New Jersey, and those upstate have been crossing the border to Vermont. Rachell Monty of Plattsburgh told the Burlington Free Press, "It’s absolutely insane. I’m going to keep buying my cigarettes on this side of the lake." Though Vermont's taxes are lower than Jersey's, it isn't worth the cost of gas to most city residents to schlep to the nearest Vermont border town. Though gas is also cheaper in both Jersey and Vermont. more ›

With all the hubub over cigarette taxes and smugglers and bans, the Times took a look today at a long forgotten fixture of most bars: the cigarette machine. Modern living hasn't taken too kindly to the machines, as New York City Department of Finance counted just three of the old fangled lever machines in the whole city. The only registered one in Manhattan is at Hell's Kitchen fixture J. Mac’s, whose owner says, "You can’t buy cigarettes around here. If my customers leave at night for cigarettes, they never come back." more ›

Since imposing the new $1.60 cigarette tax, Governor Paterson has been stalling on implementing any action on traffickers. And they couldn't be happier. According to the Post, the Tax Department says Paterson has "put a freeze on nearly the entire budget for undercover enforcement operations," and has backed down on his promise to force New York Indian tribes to pay the new tax. There goes about $150 million in revenue for the state. Paterson probably just feels sorry for the smokers. But even if they can find cigarettes for $4 a pack, it's not like they can actually enjoy them anywhere. more ›

There are too many amazing quotes in the Post's piece on how the new sin taxes are affecting fit, attractive 19-year-olds. "How can they tax me for trying to be pretty?" asks FIT student Jenna Goldschmidt, who must now pay $30 more a month for cigarettes and $40 more a month for tanning sessions. "Everyone likes to look pretty—and when I get stressed I need smoke. I need both." But isn't she worried about the health risks? "I am one of those girls who is invincible," she says. Ahh, youth. more ›

Despite being furious over the state's new $1.60 tax on cigarettes—which will drive most packs to between $11 and $12 each—smokers say they're not going to let this keep them from enjoying their fix. Jimmy Dece, 19, told the Daily News, "I'll be miserable about buying them for $11, but at least I'll have a cigarette to deal with the problem." Wait, did he just paraphrase Homer Simpson? more ›

The state Senate approved another budget extender bill which will keep Albany up and running for the next week, but which also included a $1.60 hike of the states tax on cigarettes, bringing the total state tax per pack up to $4.35. The bill passed the Senate in a 32-29 party-line vote and passed the Assembly 77-64. Republicans, who previously vowed not to pass any bill which included tax raises, were upset. Deputy Minority Leader Thomas Libous (R-Binghamton) told the Daily News, "This is just a prelude of what you are going to see in the big ugly. You are going to see spending and taxes, everything that you shouldn't do in this economy." more ›

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. more ›

Instead of that staggering $1 tax on cigarettes Paterson proposed earlier in the year, the state may be seeing a whopping $1.60 tax per pack of smokes. The proposal is laced into an emergency budget bill to be voted for on Monday, and Paterson says it would bring in an extra $290 million to close the budget gap and keep Albany from shutting down. more ›

New York State's tax on cigarettes could soar to a national high of $3.75 per pack, under one proposal being considered by the Assembly. The $1-per-pack increase in the state's cigarette tax is likely to be included in the budget resolution Democrats plan to unveil soon; one lawmaker tells the Daily News, "It's the least bad choice among all the revenues." The added tax could generate more than $200 million in revenue, which would help restore about $600 million of the $1.1 billion in school aid cuts that Governor Paterson proposed. And speaking of the budget, the Senate included a resolution in their bill legalizing medical marijuana. But Assembly Speaker Sheldon Silver says they don't "look at [medical marijuana] as revenue-raiser." more ›

In Albany, Gov. Paterson's slash-happy budget proposal has squeaked by the State Senate. Democrats banded together to pass the $136.2 billion resolution despite earlier objections to its $1.4 billion in cuts to education. All 29 Republicans present (one was out sick) voted it; according to Minority Leader Dean Skelos, Paterson's spending wasn't justified and his budget didn't do enough to restructure state spending. "This is just a sham and a gimmick," he said before his vote. more ›

Gov. David Paterson unveiled a $134 billion proposed budget today that would impose new taxes on sugary drinks and cigarettes and cut school aid and health care spending by $1.1 billion and $1 billion, respectively. "The mistakes of the past — squandering surpluses, papering over deficits, relying on irresponsible fiscal gimmicks to finance unsustainable spending increases — have led us to a financial breaking point," Paterson said. "There are no more easy answers." more ›

In an effort to add to the state's coffers, Governor Paterson signed a law into bill that will "enforce the collection of excise taxes on cigarettes sold at Indian-owned stores." The bill requires manufacturers to have the state tax stamp on its tobacco products before selling them to retailers. The excise tax is $2.75, and it's expected that the bill will bring $400 million more in revenue. While, Indian tribes feel the move will hurt them, as smokers won't head to their stores to buy cigarettes any more, Governor Paterson pointed out the law has always stood, it just hasn't been "adequately applied for far too long" and gave" non-Indians easy access to tax-free cigarettes both on the reservations and over the internet." Mayor Bloomberg, who has sued over the untaxed cigarettes, is happy: "The bottom line is everybody should be paying taxes on cigarettes." more ›

But it might make them poor! Today, NY State has introduced an additional $1.25 tax--for a total $2.75 NY State tax--on cigarettes, which means a pack of smokes is likely to cost between $8.00 to $8.50 in NYC (NYC has a $1.25 tax). NY1 got some comments from smokers on the streets:

"Wow, it's a lot of money," said one smoker. "Probably not enough to make me quit. I don't know how much it will take to make me quit." more ›

Smokers, you'll need to save up or shell out or simply quit, as state officials have agreed to increase the tax on cigarettes by $1.25, which would give NY State the highest per-pack tax of $2.75. And in NYC, there's that $1.50 tax, so Big Apple residents will have to pay $4.25 in cigarette taxes. more ›