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C-stores bear the brunt of tax hike, see 25%-35% drop in volume

ALBANY, N.Y. -- The first six weeks following a cigarette tax-rate increase in New York showed a plunge in sales at convenience stores statewide, mainly because most smokers are finding ways to dodge the tax altogether, according to a report from the New York Association of Convenience Stores.

On July 1, Gov. Paterson and the Legislature increased the cigarette excise tax in New York State from $2.75 a pack to $4.35, the highest state tax rate in the country. As NYACS predicted, the 58% jump unleashed a new wave of cigarette tax evasion, as tens of thousands of additional smokers—shocked at $9 to $12 pack prices—shifted their purchases to tax-free tribal smoke shops, the black market, and border states with lower tax rates, according to NYACS.
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Unfair to make retailers sacrifice sales while level playing field blocked by courts

ALBANY, N.Y. -- The latest in a series of state and federal court decisions has halted New York state's plan to collect taxes on cigarettes sold by Native American retailers to non-Indian customers, said the Associated Press. A state appellate court judge in western New York on Wednesday restored an order stopping the collections, Governor David Paterson's office told the news agency. An earlier order had been lifted Monday by a state judge, a decision appealed by the Seneca and Cayuga nations.

Pipe tobacco sales volumes more than triple under FET increase

WOOD DALE, Ill. -- Scores of tobacco retailers in the U.S. are taking advantage of a federal tax loophole to offer deep discounts on roll-your-own cigarettes. But the practice is attracting scrutiny from regulators and cigarette manufacturers, reported The Wall Street Journal.
 
 
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csptv
O'Reilly Zones in on C-Stores
"America's future is going to be built on people like you."

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