April 14, 2008
New York to Hike Cigarette Taxes… again.
New Yorkers, in record number are turning to the Indian reservations such as the Poospatuck Indian Reservation on Long Island to save on their cigarette purchases. Cigarettes are sold tax free on tribal lands in New York, and the savings are significant. Once lawmakers approve the state's latest hike, smokers will be able to avoid $2.75 in taxes per pack by buying on the reservation. The discount jumps to $4.25 if you factor in the municipal tax added in New York City.
But Indian reservations are not the only source of tax-free smokes.
You may be able to find counterfeit cigarettes from China imported on one of the many container ships coming in to the country. Entrepreneurs are also stocking up on cigarettes in low-tax states like Virginia and trucking them north. And, of course the Internet has provided a huge source of untaxed smokes.
Of course, many states like New York are really irritated by these contraband cigarettes sold by entrepreneurs exploiting differences in tax rates, at a cost of "billions and billions of dollars" in lost revenue to the states who are wanting to balance their budgets on the backs of poor smokers.
Higher taxes mean more and more people will turn to alternative sources for their smokes. You have to be crazy to pay almost $9 per pack, as some will be doing in New York.
In Iowa, politicians are gloating over a report that showed cigarette sales in Iowa have dropped 36 percent in the year since the per-pack state tax went up $1. What the idiots are missing is their fellow Hawkeye's are taking their money elsewhere. For example, 12 cartons of cigarettes may cost $500 in Iowa, but a short drive to Missouri can save you $200.
Two store managers, who didn't want to be named, said their cigarette sales have doubled since the Iowa law was implemented last March. Carolyn Hulett, manager of the Kum & Go store on Interstate 35 just outside of Lamoni, is not saying exactly how much her business has increased, but she hopes the law stays in force and she meets lots more Iowans.
"The people who make the laws up there aren't playing with a full deck," she said bluntly. "But I love people from Iowa, and I'm happy to take their money," she said.
"I hope the state of Iowa banishes alcohol next. I'd love to increase my liquor and beer sales."
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25 Comments on New York to Hike Cigarette Taxes… again. »
January 4, 2011
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This webstie has used my name and has not gotten the story straight . I do not have a cigareete website and I am an Iowa resident. Yes I work for Kum and Go but I have no idea who entered my name and put in the lies on this article . The other lady that works at Sharps BP was the one that was talking about her customers . All I said was "Cigarette cartons are cheaper in MO. That was back in 2006 when the IA laws changed. I request that all websites delete my name from the article and never use it again .
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