Lawmaker Proposes A Hefty Tobacco Tax Hike
The taxes on some tobacco products may be more than the cost of the products themselves under legislation proposed recently in the state Assembly.
Assemblywoman Linda Rosenthal, D-New York City, recently introduced A.11123 to amend the state Tax Law to increase the tax on tobacco products other than little cigars from 75% of the wholesale price to 129% of the wholesale price and moves snuff from a tax by weight model to a tax based on the wholesale price.
Rosenthal’s proposal would also increase the tax on vapor products from 20% of receipts from the retail sale to 48% of receipts from the retail sale of the products.
Rosenthal wrote in her legislative justification that New York has not increased its tax rates on tobacco products since 2010.
“Studies consistently show that regularly increasing taxes on tobacco products is one of the most effective ways to reduce new tobacco initiation and encourage cessation, particularly among youth and young adults who are especially price-conscious,” Rosenthal wrote. “After the federal tobacco tax was increased in 2009, researchers from the University of Illinois at Chicago found that a nationally representative survey of eighth, 10th and 12th grade students showed that students who reported using smokeless tobacco products dropped between 16% and 24%. The researchers estimated that there would have been approximately 135,000-203,000 more smokeless tobacco users among middle school and high school students had the federal tax not been increased.”
Rosenthal’s legislation is just the latest piece of legislation dealing with cigarettes to be proposed this year. Assemblywoman Ellen Jaffee, D-Pearl River, and Sen. Liz Krueger, D-New York City, proposed A.9573/S.7259 in January to amend the public health law to ban the sale of single-use filters for cigarettes and single-use lighters. That bill was referred to the Assembly and Senate Health committees and didn’t receive a vote during this year’s legislative session.
In July, Rosenthal introduced A.10732 to amend the public health law, in relation to prohibiting the distribution without charge or sale of flavored nicotine pouches. That bill, too, has not been voted on in committee this year.
State Sen. Tim Kennedy, D-Buffalo, proposed S.8135 in March to amend the public health law and the tax law to require a business that is shown to have sold a tobacco product to a minor to close pending the completion of an investigation. The bill has yet to be taken up by the Senate Health Committee.