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New Tax Lowers N.Y. Cigarette Sales
AP | 8/06/02

Posted on 08/06/2002 3:31:28 AM PDT by kattracks

NEW YORK, Aug 06, 2002 (AP Online via COMTEX) -- Cigarette sales in New York plummeted almost 50 percent in July after the city raised the tax on each pack from 8 cents to $1.50, according to new figures from the city's department of finance.

New Yorkers purchased 15.6 million cigarette packs last month, down from 29.2 million packs in July 2001. But because the tax was so much higher, millions more tax dollars poured into city coffers - $12.3 million, compared to $2.3 million during the same period last year.

The new tax, which Mayor Michael Bloomberg supported to help close a record budget gap, drove the price of some name brands to more than $7 per pack.

There are no studies yet to determine whether New Yorkers are quitting smoking or simply taking other avenues to fix their nicotine cravings, such as online mail order buys or trips out of town.

Copyright 2002 Associated Press, All rights reserved




TOPICS: Culture/Society; News/Current Events; US: New York
KEYWORDS: pufflist
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To: Gabz
Hey Gabz, you might not have seen this yet.
STARTLING SMOKE $IGNALS
From the story: Under terms of a deal with the state, the city keeps 53.5 percent of what it collects, or $12.3 million. The rest goes to Albany.
61 posted on 08/06/2002 8:30:22 AM PDT by Just another Joe
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To: kattracks
There are no studies yet to determine whether New Yorkers are quitting smoking or simply taking other avenues to fix their nicotine cravings, such as online mail order buys or trips out of town.

Jeez, AP, do a poll like you always do. You know what the answer is, why don't you want to report it?

62 posted on 08/06/2002 8:35:44 AM PDT by hattend
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To: SheLion
Hi SheLion

Just got back from voting for only conservitives in the Kansas primaries. It's time to take this state back from the RINOs!

63 posted on 08/06/2002 8:38:57 AM PDT by KS Flyover
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To: Born to Conserve
Ah, payback! For all the smoke blown in my face, for all the cigarette butts and litter I have to see -- taxes are universally dumb, but I am enjoying watching the smokers squirm. If, as a group, they had been a little more considerate, maybe I would feel different, but they are almost perfectly selfish, so, ENJOY!

Why would you think smokers are squirming, I am having fun with this.

And by the way, smokers were for the most part considerate, until fanatic anti smokers took center stage.

Don't be so darned smug.

64 posted on 08/06/2002 8:39:40 AM PDT by Great Dane
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To: Just another Joe; BikerNYC
You're right Joe - I had not seen that.

Biker - please accept my apologies. That was a section of the new tax of which I was unaware.

65 posted on 08/06/2002 8:43:27 AM PDT by Gabz
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To: Linda Liberty
What kind of conservative movement is it if it doesn't contain anybody who wants to cut spending?

So you have found a conservative issue to claim as your own. And what a convientient issue it is. While you can claim to be conservative you never have to say anything good about any conservative because he doesn't measure up on your one issue because in this day and age nobody cuts spending and lives to get re-elected.

I'm the only conservative here.

I am not the one who want's marijuana leagalized, nor do I approve of women having premarital sex by the dozens!!!!!! I have not defended liberals nor do I dispise our current president. But you have done all of these things.

66 posted on 08/06/2002 8:45:02 AM PDT by Between the Lines
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To: BikerNYC
No, I think you are misunderstanding. There is a 1.50/pack NYC tax and 1.50/pack NY State tax for a total of $3.00/pack. Both NYC AND NYS each received ~21million by simple math.
67 posted on 08/06/2002 8:47:14 AM PDT by rb22982
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To: rb22982
See post #61
68 posted on 08/06/2002 8:48:55 AM PDT by Just another Joe
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To: rb22982; BikerNYC
Nevermind read further down. State made about 30 million then.
69 posted on 08/06/2002 8:49:19 AM PDT by rb22982
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To: Bella_Bru
Holy Smoke! You mean the Mafia and many others are now back in business smuggling smokes and hi-jacking cigarrette trucks? I thought that all went out with Prohibition. Will the pols ever learn? (sorry, that question is superfluous). Now, will they raise taxes again to make up for the shortfall in cig taxes? (Sorry again! That's two dumb questions in one paragraph!)
70 posted on 08/06/2002 8:57:46 AM PDT by Paulus Invictus
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To: Between the Lines
because in this day and age nobody cuts spending and lives to get re-elected.

How would you know? Nobody's tried, except Bloomberg and we'll have to wait and see.

The Republicans came into congress in 94 with a great contract, and they attempted to implement some of it, and reined in spending for a few years. They were elected big time in 94 because they said they'd actually rein in government. But then they became wannabee democrats, like they are now. We'll see whether that gets them reelected or not. I think that if they actually cut spending and reined in government, they'd be massively elected.

71 posted on 08/06/2002 9:20:38 AM PDT by Linda Liberty
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To: BikerNYC
Yes, but of that $21 million, the City gets $12.3 million and the State gets the rest.

You are undoubtedly correct, but the article said "after the city raised the tax on each pack from 8 cents to $1.50" indicating NYC got all of the increase.

72 posted on 08/06/2002 9:57:23 AM PDT by laredo44
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To: rb22982
Both NYC AND NYS each received ~21million by simple math.

Just so we're all clear, the amount of the increase is $21 million. The total tax collected was $23.4 million.

73 posted on 08/06/2002 10:07:14 AM PDT by laredo44
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To: kattracks
This article has a major error in it.

New Yorkers purchased 15.6 million cigarette packs last month,

No, TAX STAMPS for 15.6 million packs were purchased last month.

They way the system works (at least in GA, I'm assuming it is similar in NY) is this. A wholesaler purchases the stamps and applys them to the packs that are sitting in their warehouse. They are then distributed to stores who have to stock them and then sell them to customers. There can be as much as a 30 day lag time between the time the stamps are ordered and someone acutally buys the pack to smoke.

This first order of stamps by wholesalers was just an estimated guess of how many they would need. It will take several months to determine how this has really affected sales.

74 posted on 08/06/2002 10:32:47 AM PDT by Brookhaven
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To: KS Flyover
Many thanks to you, Flyover. Doing the same.
75 posted on 08/06/2002 10:41:04 AM PDT by Bahbah
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To: kattracks
millions more tax dollars poured into city coffers - $12.3 million, compared to $2.3 million during the same period last year.

This fails to take into account the lost tax revenue in other areas.

Gasoline, beer, and cigarettes are the "drivers" of convience stores (they are the reason people visit those stores in the first place.) Since they are there anyway, they go ahead and purchase additonal items (bread, soft drinks, milk, aspirin, magazines, newspapers, etc...)

How many of these additonal sales are being lost by the store because fewer people are stopping to buy cigarettes? Who knows, but the taxes associated with the sale of those items (sales tax, business income tax) are lost and certainly offset the increased tax revenue from the cigarettes.

76 posted on 08/06/2002 10:43:38 AM PDT by Brookhaven
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To: laredo44
True, but the City could only raise the tax with the State's permission, and the cost of that permission was a cut of the City tax.
77 posted on 08/06/2002 11:05:44 AM PDT by BikerNYC
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To: Bahbah
Many thanks to you, Flyover. Doing the same.

Way to go Bahbah! Thank you!

78 posted on 08/06/2002 11:23:47 AM PDT by KS Flyover
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To: kattracks
I listened to a short program on the BBC last night, lamenting that US states were allocating tobacco "settlement" money (that left over after the lawyers get done vacuuming) towards expenditures other than tobacco cessation programs.

It was pretty funny in a perverse sort of way. They seemed to think this was unprecedented or somesuch. Many states are using the money towards budget deficits and tax cuts. The smoking nazis (that's what the are) have opened a can of worms here for sure. I expect to see tobacco largely criminalized in my lifetime and the modus operendi utilized for anything and everything deemed 'bad' by the intelligentsia. Way to go, guys.

79 posted on 08/06/2002 11:31:20 AM PDT by Freedom4US
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To: Freedom4US
I expect to see tobacco largely criminalized in my lifetime and the modus operendi utilized for anything and everything deemed 'bad' by the intelligentsia.

I'm not sure that tobacco will be criminilized but the modus operendi is ALREADY being used.

80 posted on 08/06/2002 12:52:13 PM PDT by Just another Joe
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