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N.Y. Shows Black Market Cigarettes
AP Online via COMTEX ^ | Aug 26, 2002 | ERIN McCLAM

Posted on 08/26/2002 3:14:45 PM PDT by grimalkin

NEW YORK, Aug 26, 2002 (AP Online via COMTEX) -- Standing behind a chest-high pile of more than 237,000 seized cigarettes, city officials said Monday they had cracked down on stores selling tobacco without a license.

But smoker advocates say black-market sales will only grow in New York, where a tax hike has pushed cigarettes to $7.50 a pack and the mayor is waging a policy war against smoking.

The city seized 11,871 packs - or 237,420 individual cigarettes - from 40 unlicensed sellers between February 2001 and February 2002, said Pansy Mullings, enforcement chief of the Department of Consumer Affairs.

Authorities say they worry unlicensed retailers are dodging cigarette sales taxes and selling tobacco products to minors. To obtain a license, sellers must agree to restrictions on signs and pledge not to sell to minors.

The crackdown is evidence that Mayor Michael Bloomberg is serious in his "campaign against tobacco," said Gretchen Dykstra, the city's commissioner of consumer affairs.

Although the crackdown concluded in February, the announcement Monday came amid Bloomberg's ongoing actions against smoking. He is also seeking to seeking to outlaw smoking in all bars and restaurants.

New York City smokers have been hit this year by a hike in the city's cigarette tax from 8 cents to $1.50. With state and federal taxes, a pack of cigarettes costs up to $7.50 - tops in the nation.

The result is that more smokers are buying cigarettes more cheaply off the Internet, at American Indian reservations and from unlicensed retailers, said Audrey Silk, founder of the smoker-rights group NYC CLASH.

"This is Bloomberg's doing. He set up a lucrative business. They can all thank him," she said Monday.

The city's Department of Finance will auction the seized cigarettes to wholesalers.

The cigarettes typically sell at auction for about $10 a carton, and the pile seized in the crackdown will earn the city nearly $14,000, said Martha Stark, the city finance commissioner.

---

On the Net:

New York City Department of Consumer Affairs:
http://www.nyc.gov/html/dca/home.html

NYC CLASH: http://www.nycclash.com

By ERIN McCLAM Associated Press Writer

Copyright 2002 Associated Press, All rights reserved


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events; US: New York
KEYWORDS: business; michaelbloomberg; michaeldobbs; newyork; overtaxation; pufflist; smoking; taxes; tobacco
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To: grimalkin
Roll your own! I roll a beautiful carton and it costs a little under $8 dollars for a CARTON!!


21 posted on 08/26/2002 4:08:51 PM PDT by SheLion
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To: Jonathon Spectre
Welcome to the War on (Some) Drugs v2.0.

And so many want to legalize mj just like cigarettes! Just wait till the tax authorities hit mj with the taxes!

22 posted on 08/26/2002 4:10:13 PM PDT by cinFLA
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To: KineticKitty
Glad You don't live there huh? Man even as an X smoker this is JUST WRONG. I don't blame New Yorkers one bit for seeking out lower cost cigarettes.

Wonder how many of these smokers even vote

Gotta be a hell of a lot more smokers than homosexuals yet they are treated like scum and those with AIDS like heros

The reason LACK OF ORGANIZATION
23 posted on 08/26/2002 4:10:45 PM PDT by uncbob
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To: AGreatPer
See what this war on the smoker has reduced everyone to? This is so sick. To have to sneak and hide like teenagers in high school grabbing a quick beer. I just can't stand this. I can't stand the lawmakers that have done this to us.
24 posted on 08/26/2002 4:14:22 PM PDT by SheLion
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To: Max McGarrity
Max, remember this one?


25 posted on 08/26/2002 4:18:02 PM PDT by SheLion
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To: grimalkin
If they find pipes, matches and other "smoking paraphernalia" on you during a random search, do you lose your subway token and your rent-controlled apartment?
26 posted on 08/26/2002 4:19:44 PM PDT by BlazingArizona
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To: bat-boy
It's only a matter of time before tobacco is made illegal and people start doing time.

There is too much MONEY in tobacco for them to make it illegal. If it was so bad for us, why didn't they just make it illegal instead of raising the taxes through the roof?

27 posted on 08/26/2002 4:19:48 PM PDT by SheLion
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To: SheLion
Roll your own! I roll a beautiful carton and it costs a little under $8 dollars for a CARTON!!

I just got my Supermatic friday. It took a little practice but it works just fine. I would recommend it to anyone. Thanks!

28 posted on 08/26/2002 4:20:39 PM PDT by facedown
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To: Fraulein
Geez, I just purchased a carton of Marlboro Lights at a local Texaco station here in Tennessee for $25.99...

So? You can purchase a carton of those same cigarettes at yesmoke.com for just $14.30.

29 posted on 08/26/2002 4:22:30 PM PDT by PJ-Comix
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To: grimalkin
What is cought by police, is a very small portion, and when you think of those smokes being taxfree, it's not much of a loss..... cost of doing business.
30 posted on 08/26/2002 4:24:14 PM PDT by Great Dane
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To: SheLion
Pennsylvania hiked the cigarette tax. People run for the state line. Pennsylvania owns and operate ALL liquor stores in the state. They operate a lottery. The people around here never buy wine, beer or booze in this state.
They buy in Delaware and Maryland. Pennsylvania never saw a vice it did not like and want to tax. Watch for the slots to appear soon. They cannot stand to see all that money go to NJ and Delaware.
31 posted on 08/26/2002 4:24:43 PM PDT by oldironsides
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To: AGreatPer
They go to a corner or an isolated spot in the city.

Psst! Industrial parks. They are full of mechanical shops with auto mechanics and other blue collar workers who almost all smoke. Take it from one who knows. Hee! Hee!

32 posted on 08/26/2002 4:26:38 PM PDT by PJ-Comix
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To: *all
GOING ON RIGHT NOW!!!

JOIN US: PROTEST

RALLY!

  Monday, August 26th at 6PM at City Hall (South End)

Led by Artist Scott LoBaido, 4th generation New Yorker
Supported by NYC C.L.A.S.H.

" A TRUE REVOLUTION "
Click here for a message from Scott LoBaido

33 posted on 08/26/2002 4:27:24 PM PDT by SheLion
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To: AGreatPer
Several times the cops have seen them and moved on. One cop came up after he changed clothes and bought 5 carton.

You gotta love that.

34 posted on 08/26/2002 4:28:10 PM PDT by Great Dane
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To: SheLion
You make a good point. Considering the government makes more money off of tobacco than the tobacco companies do, then I guess they can be considered drug dealers.
35 posted on 08/26/2002 4:30:45 PM PDT by bat-boy
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To: cinFLA
And so many want to legalize mj just like cigarettes! Just wait till the tax authorities hit mj with the taxes!

Thats the only reason they want to legalize mj.

36 posted on 08/26/2002 4:33:05 PM PDT by Great Dane
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To: grimalkin
The city will hit a point of diminishing returns. Quebec tried this about 10 years ago. The black market sucked up demand, little was sold in the straight market, ergo tax revenues actually dropped. Subsequently, the taxes were dropped to "normal" levels." Does anyone ever study economics anymore?
37 posted on 08/26/2002 4:33:13 PM PDT by Cobra64
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To: facedown
I just got my Supermatic friday. It took a little practice but it works just fine. I would recommend it to anyone. Thanks.

You will NEVER regret it! It's been a year this past June, and the money saved has been unbelievable!

One tip: when you crank the handle, do NOT push down. I was doing that, and I broke my machine. Just try not to apply pressure as you crank the handle. And the machine will last a long time.

38 posted on 08/26/2002 4:34:52 PM PDT by SheLion
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To: bat-boy
Considering the government makes more money off of tobacco than the tobacco companies do, then I guess they can be considered drug dealers.

Well, the general public is under the mis-conception that the Tobacco Company's are paying for the Tobacco Settlement Money. WRONG! The smokers are paying the MSA 100% through taxes. And that money WAS supposed to go for health care and education. But we all know that is not the case.

The state lawmakers are using that money for pet programs and to balance the WHOLE state budget. Doesn't seem fair to me........

39 posted on 08/26/2002 4:38:12 PM PDT by SheLion
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To: Cobra64
Subsequently, the taxes were dropped to "normal" levels."

We are waiting, but I am not going to hold my breath. Might turn blue before that happens.

40 posted on 08/26/2002 4:40:37 PM PDT by SheLion
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