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Millions up in smoke: NY has nation's highest cigarette tax; why do so few pay it?
Syracuse Post-Standard ^ | 12/13/15 | Teri Weaver

Posted on 12/13/2015 5:45:30 AM PST by jalisco555

SYRACUSE, N.Y. – The number of state-taxed cigarette packs sold in New York has plummeted by 54 percent in the past decade.

That's far outpacing the 19 percent decline in New Yorkers who have quit smoking over the same time.

Instead, more smokers are buying cigarettes in ways that avoid New York's $4.35 per pack tax, the highest in the nation. They cross state lines, shop from black market vendors and travel to Native American outlets to save $6 per pack or more, experts say.

New York is losing big. In the past five years, the state's cigarette tax collections have dropped by about $400 million, according to data and estimates from the office of state Comptroller Thomas DiNapoli.

Consider: A pack of Marlboro Reds bought in the town of Onondaga recently cost $10.58. That includes a state tax of $4.35 per pack, a federal excise tax of $1.01 per pack, and 8 percent sales tax of 78 cents.

Just down Route 11, the Onondaga Nation runs a small tobacco store with a 24-hour drive-through. There, a pack of Senecas costs just $4. That likely includes that $1.01 federal excise tax, according to several experts.

(Excerpt) Read more at syracuse.com ...


TOPICS: Business/Economy; Front Page News; Government; US: New York
KEYWORDS: newyork; syracuse; taxes; tobacco
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To: Vaquero

Yup. I live in NY, and I don’t know a single person who buys his cigarettes in a store.

In the City, there are vans driven by guys with names like “Vinnie the Kneebuster” who go around to their “usual customers” and sell ‘em out of the back.

There are others who travel down to Delaware, Virginia, or Pennsylvania once a month.

People are selling loosies in some neighborhoods.

But buying cigs from a store? I only ever see people get a pack at a time — MAYBE — because they haven’t gotten around to doing one of the above that day. I haven’t seen someone purchase a carton from a store in...hell...in YEARS.

The state did this to itself. It should be made to live with the consequences.

Regards,


21 posted on 12/13/2015 6:19:44 AM PST by VermiciousKnid (Sic narro nos totus!)
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To: Wheelman81

Well, the obvious problem is lax cigarette taxes elsewhere, so the clear mandate is to have every other jurisdiction in the land have identical cigarette taxes as NYC does. And gun laws. And bans on trans fats. And parking prices - we wouldn’t want anyone to just park somewhere else either, would we?


22 posted on 12/13/2015 6:21:02 AM PST by coloradan (The US has become a banana republic, except without the bananas - or the republic.)
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To: Gay State Conservative

The sale of southern state cigarettes is a revenue stream for organized crime, as well.


23 posted on 12/13/2015 6:22:32 AM PST by USNBandit (Sarcasm engaged at all times)
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To: Vaquero

Over the 30 yrs I have lived since I quit in 1985 or so I have saved just a tad under $110,000 using an average price of $5.00 per pack and 2 packs per day.

Imagine, $110,000 PLUS the health benefits of being smoke free.


24 posted on 12/13/2015 6:24:54 AM PST by billyboy15
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To: billyboy15
At $10.00 each or $20.00 daily it comes to $600.00 per month or $7,200 annually.
What absolutely slays me is the number of pooooooooor people who smoke. Can't afford to feed or cloth their kids (or themselves), but have no problem buying smokes.
25 posted on 12/13/2015 6:27:36 AM PST by oh8eleven (RVN '67-'68)
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To: USNBandit
The sale of southern state cigarettes is a revenue stream for organized crime, as well.

We drove to and from Florida earlier this year.We stopped,out of curiosity,at a huge tobacco store somewhere along I-95 in NC...IIRC it's pretty famous.One might suspect that its prices attract smokers living in the Northeast but,IIRC,they had a limit as to how many cartons you could buy.I think the clerk said that the tobacco companies required it.

26 posted on 12/13/2015 6:29:54 AM PST by Gay State Conservative (Obamanomics:Trickle Up Poverty)
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To: VermiciousKnid

But since there has only been a 54% decrease in sales that result in tax being paid to the state, that must mean that tourists are the only ones buying cigs in a store. And that actually makes sense, because what tourist wants to meet Vinnie the Kneebuster in an alley?


27 posted on 12/13/2015 6:30:18 AM PST by Bernard (The Road To Hell Is Not Paved With Good Results)
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To: billyboy15

Cigs in my state are much lower taxed but the cost/carton has went from 32 bucks to 38. I bought a cig making machine and the tobacco and filtered tubes and am spending slightly less than 15 per carton. Bought the machine at a yard sale from a guy who quit for 5 bucks. I had never seen one and there was no book with it, but I figured it out. Top-O-Matic is the brand name.


28 posted on 12/13/2015 6:33:05 AM PST by Foundahardheadedwoman (God don't have a statute of limitations)
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To: VermiciousKnid
In the City, there are vans driven by guys with names like "Vinnie the Kneebuster" who go
around to their "usual customers" and sell 'em out of the back.

They were "Goodfellas" ...
29 posted on 12/13/2015 6:33:43 AM PST by oh8eleven (RVN '67-'68)
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To: oh8eleven
What absolutely slays me is the number of pooooooooor people who smoke.

Stats clearly show that the lower you are on the country's socio-economic ladder the more likely you are to smoke (tobacco).

To give a practical example...I worked for decades at a major (well known) hospital.When I started about half of the physicians,and two-thirds of the nurses,with whom I worked smoked.When I left a few years back *none* of the physicians,and no more than a quarter of the nurses,smoked.

Of course the health care factor probably played a role but it's also true that physicians are at the top of that ladder and nurses make pretty good money as well.

30 posted on 12/13/2015 6:37:41 AM PST by Gay State Conservative (Obamanomics:Trickle Up Poverty)
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To: Bernard
But since there has only been a 54% decrease in sales that result in tax being paid to the state, that must mean that tourists are the only ones buying cigs in a store. And that actually makes sense, because what tourist wants to meet Vinnie the Kneebuster in an alley?

Plus, they're probably unaware of the Indian reservation exemption.

31 posted on 12/13/2015 6:46:27 AM PST by jalisco555 ("In a time of universal deceit telling the truth is a revolutionary act". George Orwell.)
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To: billyboy15

I’m certainly no advocate for smoking. Quite the opposite in fact. But I’m always amused when leftists are astonished that their tax projections never pan out and that high taxes lead to tax avoidance. Yet they never learn.


32 posted on 12/13/2015 6:48:10 AM PST by jalisco555 ("In a time of universal deceit telling the truth is a revolutionary act". George Orwell.)
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To: VermiciousKnid

****In the City, there are vans driven by guys with names like “Vinnie the Kneebuster” who go around to their “usual customers” and sell ‘em out of the back.****

I kinda wonder if all this high tax system is, is nothing more than a kickback scheme where cops “look the other way” for a price that is shared with the politicians.


33 posted on 12/13/2015 6:49:09 AM PST by ResponseAbility (The truth of liberalism is the stupid can feel smart, the lazy entitled, and the immoral unashamed)
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To: VermiciousKnid
I live in Virginia, and I shop once or twice a month at Sams Club. Usually the quickest way to check out is through the tobacco counter. Occasionally there will be several rough looking guys there, 'buying for their store'. Several Cases of smokes, usually Newport, and all paid for in cash. There is a limit for how much they can spend without a report being sent, and don't you know, these guys come right up to that limit. every time. I think it's somewhere in the $5000 to $6000 range. In Virginia, it's not usual for some guy who hasn't shaved in three or four days, to reach into his greasy jeans and pull out a gangster roll of $10000 or more to buy some smokes.

Thanks New York! Your volume keeps my prices down.

34 posted on 12/13/2015 6:52:10 AM PST by Wingy
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To: Joe Boucher
My folks use to do the same only we lived in Los Angeles and would drive to Tijuana for a booze run. Less than half and NO federal taxes.

Good thing we have Wal-Mart, or we'd be making weekly runs to China!

35 posted on 12/13/2015 6:52:11 AM PST by Mr Ramsbotham (Laws against sodomy are honored in the breech.)
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To: Gay State Conservative

I alsp live in TAXachusetts. On my way to Maine to visit family, I stopped in the Rte 95 New Hampshire Booze-a-porium for wine to bring.
As I walked through the parking lot, I noticed something I didn’t understand. Entering, I located a man who appeared to be a manager of some level.
I asked him why New Hampshire residents were not allowed to make purchases in his store. When he didn’t understand, I explained that but for 2 cars from Connecticut, there were only cars from Massachusetts. I’d seen NONE from New Hampshire.
He quietly smiled at me and nodded.


36 posted on 12/13/2015 7:00:18 AM PST by CaptainAmiigaf (New York Times: "We print the news as it fits our views.")
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To: billyboy15
Imagine, $110,000 PLUS the health benefits of being smoke free.

Add to that the health costs of not being smoke-free.

37 posted on 12/13/2015 7:00:23 AM PST by Mr Ramsbotham (Laws against sodomy are honored in the breech.)
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To: billyboy15
Your smug is showing. When I want smug, I'll go to Salon. Around here, it's treated with a certain contempt.

A word to the wise is sufficient.

38 posted on 12/13/2015 7:12:14 AM PST by jonascord (It's sarcasm unless otherwise noted... This time, it's not.)
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To: Don Corleone
What the liberals er fascists will do is add a tobacco package tax on anything you buy in a store that sells tobacco. Like run in for a gallon of milk. Fine, we add $4.50 as if you had bought a pack of cigarettes. Pay up sucker. When governed by fascists you get fascist rules. You want fascism New Yorkers enjoy.
39 posted on 12/13/2015 7:31:15 AM PST by Kozy
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Comment #40 Removed by Moderator


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