ALBANY, N.Y. -- New York lawmakers passed the state’s budget April 9 without changing its taxation policies on cigars or electronic cigarettes, according to the state convenience-store association.
Officials with the New York Association of Convenience Stores (NYACS) said retailers and suppliers teamed up to keep a “harmful shift” in the state’s cigar excise tax out of the budget approved by Gov. Andrew Cuomo and the state legislature. Jim Calvin, president of NYACS, Albany, N.Y., commended his retail and distributor members, as well as the Cigar Association of America, Washington, D.C., for their efforts.
Cuomo had proposed switching the tax from 75% of wholesale value to 45 cents per stick. The change would have doubled the price of two-packs of value cigars sold in convenience stores, while giving premium cigars a tax break, Calvin said.
“It would have driven c-store customers away by giving them an incentive to avoid the higher tax by purchasing cigars from neighboring Pennsylvania, where the state excise tax is zero, or Native American enterprises that refuse to collect state tax, or untaxed online sources,” Calvin said.
The approved budget also excluded the governor’s proposed excise tax on e-cigarettes and e-liquid nicotine.
“While the 10-cents-per-milliliter [tax] would have been relatively modest, NYACS opposed it on grounds that once a tax like this is established, Albany can’t resist jacking up the rate to excessive levels that drive away customers to untaxed sources, costing c-stores business,” Calvin said. Also omitted were additional restrictions on marketing and use of vaping products the governor had proposed.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.