Cigarette taxes headed up again
In less than 24 hours, you can expect to pay a $1.60 more for a pack of cigarettes in New York State. Last week state lawmakers passed a bill that gives New York the highest cigarette taxes in the country. Our Brad Vivacqua is at Rocky's News Stand on North Salina Street in Syracuse to tell us how the hike will affect business.
To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.
Then come back here and refresh the page.
SYRACUSE, N.Y. -- Prices for most packs of cigarettes here at Rocky's average between $7 and $9. But, as of Thursday, you'll see the prices rise as another $1.60 in state tax will be added to every pack.
New York State's cigarette tax will rise to $4.35. The average price of a pack of cigarettes in New York State will be about $9.20.
Rocky's owner Mike Glynn expects this move will have at least some sort of negative impact on his sales. And, although this move may encourage some smokers to quit, Glynn and other business owners we spoke to don't think so.
"People just aren't quitting people are just avoiding the tax. So, every time they raise the tax, there's someone out there saying look, we sold less cigarettes, people stopped smoking. But, genuinely we feel that isn't the case, it just means more people are avoiding the tax by buying in non-taxed outlets," said Glynn.
The move is expected to help generate about $440 million. The state will also attempt to collect taxes on cigarettes sold on Indian reservations to off-reservation customers starting September 1.
Starting August 1, tax on smokeless tobacco is expected to increase, and the wholesale tax on cigars and other tobacco products will go up as well.
Glynn says his online sales of these products to out of state customers should stay up which will help lessen the burden of losing in store business.