Brief: Many New York state smokers are buying their cigarettes in Pennsylvania or on Native American reservations so as to avoid paying the US' highest state tobacco taxes, according to a report by Brendan Scott and Carolyn Salazar for the New York Post.
Many New York state smokers are buying their cigarettes in Pennsylvania or on Native American reservations so as to avoid paying the US' highest state tobacco taxes, according to a report by Brendan Scott and Carolyn Salazar for the New York Post.
On July 1, New York state increased its profit from the sale of cigarettes to $4.35 a pack, a figure that rises to $5.85 with local taxes in New York City.
As a consequence of the tax increase, smokers were hit with a $1.60-per-pack rise in retail prices and state cigarette sales fell by nearly a third - 25-35 per cent according to convenience store owners.
New York state sold 28.7 million cigarette tax stamps during July, down from 43.1 million during July 2009, a spokesman for the state Department of Taxation and Finance was quoted as saying.
And, according to the Post's story, that meant the state received $125 million in cigarette tax revenue last month, barely more than the $119 million haul in July 2009, despite the massive tax increase.
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