Locals React to Tobacco Tax

It just got a bit more difficult to be a smoker, at least in New York.

There will be a tax increase on all tobacco products across the state, raising the already comparatively high prices of cigarettes by $1.60, the result of a new bill passed this month. This new legislation, in place as of July 1, has made New York the state with the highest cigarette taxes in the country.

The average price per pack is now approximately $9.20, depending on location. In New York City, the average price is about $10.80.

According to the New York Times, the new taxes will bring in $440 million in revenue, which will go toward filling New York State's $9 billion budget gap, as well as funding health care programs. Approximately $71.6 million will go to the cancer research center in Buffalo, N.Y.

Currently, $2.75 is the state tax, with another taxed $1.50 in New York City, which makes a combined city and state cigarette tax total of $4.25 on each pack bought there. Governor David Paterson initially called for a cigarette tax increase of just one dollar, which is lower than the amount passed by the legislature Monday night.

But with the Connecticut border only miles away, will this mean that the only people really hurt by the tax in Harrison are small business owners?

Obviously, there are strong opinions behind this new legislation. Tony, who didn't want to give his last name, works at T.D.'s Rye Smoke Shop on Purchase Street. He said the tax hike is going to hurt business.

"Locally, with the combined city and state tax, its almost a $2 total increase. For us, this is going to be especially hurtful," he said. "Connecticut is right next door; and right now they don't have this price hike on their cigarettes."

T.D.'s Rye Smoke Shop is a family-run store, and like fellow convenience shops, tobacco products are some of the highest selling items.

But what is bad news for New York residents is good news for storeowners in bordering states. According to the Associated Press, Vermont shop owners are now selling more cigarettes to New York residents since July 1, the day the increase began. There is a good chance we could see the same thing happen in Connecticut.

"Frankly, this tax is bad for business," said Tony, who clearly stands against the tax.

If the higher prices do in fact continue to deter business in New York, it may cause the expected revenue from the new tax to actually fall short. Although this problem is unique for areas bordering other states, the higher taxes in this area could hurt local businesses and do little to actually deter people from smoking.

But, on the other hand, driving to another state for a pack of smokes could in itself be enough to help people kick the habit.

"It's a huge jump," said Al, who is a smoker and also didn't give his last name. "But on the other side of things, the high cost does help with trying to smoke less or quit."

For now, it's uncertain how the new tax will work out. It is safe to say, however, that smokers across New York are going to have to think a little bit more about if the habit is worth the cost and trouble.