Banning the sale of flavored tobacco products and raising the cigarette tax in New York would hurt small businesses, strengthen the illicit market, eliminate jobs and have no meaningful health effect on adults or children, according to the New York Association of Convenience Stores (NYACS).
“Additionally, any ban on specific tobacco items while the state is legalizing and expanding retail cannabis sales is contradictory and punitive,” the organization said in memo to legislators, shared with CSP Daily News.
New York Gov. Kathy Hochul proposed raising the cigarette tax from $4.35 to $5.35 per pack and expanding the state’s flavored vapor sales ban to include all flavored tobacco products as part of her 2023 State of the State plan.
The State of State plan is only the first step in defining the governor’s agenda for the upcoming year. Not all proposals materialize—for example, New York and several other states considered bills to increase cigarette and other tobacco product (OTP) taxes in 2022, and nearly all failed. A slew of other proposals that could affect tobacco and OTP products in New York were also introduced at the start of the new year.
Hochul’s plan said banning the sale of flavored tobacco products and raising the cigarette tax would reduce the number of young people smoking cigarettes by 9%, prevent 22,000 youths from becoming adult smokers and prevent premature deaths caused by smoking.
But opponents fear it has other consequences.
In New York state, more than 13,000 licensed retailers sell flavored tobacco products, employ hundreds of thousands of people and generate more than $1.1 billion in tax revenue annually, NYACS said. Banning the sale of flavored tobacco products would affect jobs as well as eliminate $432.4 million in state tax revenue, the association said.
Faheem Jamal, director of c-store operations for Chestnut Market, told CSP Daily News he was disappointed when he heard the governor’s plan.
The New Paltz, New York-based chain of more than 70 stores, owned by CPD Energy Corp., has stores in New York, New Jersey and Connecticut. Banning flavors would only increase illegal sales, and people could easily cross state lines to bring cheaper and flavored products over borders, he said.
- CPD Energy Corp. is No. 105 on the CSP 2022 Top 202 ranking of U.S. convenience-store chains by store count.
“In turn, the only people that will be affected are responsible retailers such as us, Chestnut Market, and companies who follow the rules and regulations, and pay the proper taxes, buy the proper stamped cigarettes [and] ask for identification when needed.”
It wouldn’t only affect the chain’s tobacco category, either, he said.
“People who are regular commuters to buy gasoline, to buy coffee in the morning, a snack on their way to work—we would lose those customers as well,” Jamal said. “We would just love for New York state to listen to us as responsible retailers and help us become better retailers. Don’t hurt us for being good retailers and good members of the community.”