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CW News

CWNews

New York Tax a Reality

New York State Assembly Approves New Tobacco Tax Increases
Floor Stocks Tax Applies Only to Cigarettes
 

June 24, 2010 - Despite exhaustive efforts by New York IPCPR retailers, organized as the New York Tobacconist's Association (NYTA), lobbyists, and an aggressive grassroots campaign, the state Assembly approved additional tobacco taxes to close the state's $9 billion budget gap.
 
What may be considered the only "silver (more like a dull silver) lining, is that the floor stocks provision will only apply to cigaretttes. Here are the new tax rates: 
  • Large cigars (including premium cigars), pipe tobacco, ryo tobacco and chewing tobacco - from 46% to 75% of the wholesale price (the governor remained steadfast in his opposition to a tax cap on large cigars on the grounds that it favored the wealthy and would be regressive (obviously the governor does not understand how regressive the 75% tax rate will prove to be on in-state retailers).
  • Cigarettes - an increase of $1.60 per pack (from $2.75 per pack to $4.35)
  • Little cigars (defined as any roll for smoking made wholly or in part of tobacco if such product is wrapped in other than natural leaf tobacco wrapper, and weighing not more than 4 lbs. per 1,000) - from 46% of the wholesale price to $4.35 per pack of 20 (to be taxed at the same rate as cigarettes).
  • Smokeless, moist stuff--
      from $.96 per ounce to $2 per ounce.
 
Important notes: 
The new taxes on tobacco products, snuff and little cigars are effective August 1, 2010. The cigarette tax increase is effective July 1, 2010.  
The floor stocks tax only applies to cigarettes.  
 

 

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