I once watched a documentary on cigarettes in NYC.
Counterfeit cigarette cartons, cartons from the Reservations, out-of-state, etc. that does seem to be a revenue problem.
In short, there is a black market apparently there.
“Black Market Cigarettes Fund Terrorism, Report Says”
New Yorkers who buy black market cigarettes in an effort to dodge high city and state taxes may be unwittingly supporting terrorist groups like Hezbollah and Hamas, according to a congressional staff report
http://www.drugfree.org/join-together/black-market-cigarettes-fund-terrorism-report-says/
Where communists control (NYC) there will always be black markets .... how else would the Comrades survive?