The Paterson Administration is backing off on plans to (finally) start collecting taxes on cigarettes sold by American Indian retailers, the Buffalo News reports. This will add $65 million in red ink to the state’s growing budget deficit.
The decision drew immediate and sharp criticism from health groups and an association that represents non-Indian retailers who say they cannot compete with the American Indians, who do not charge the state’s sales $2.75-per-pack excise tax.
“It’s embarrassing, and it’s outrageous that the Empire State can’t seem to figure out how to collect this tax when just about every other state does,” said Russell Sciandra, director of the Center for a Tobacco Free New York, which is connected with the American Cancer Society.
Critics say the state loses $1 billion annually by not collecting the cigarette tax. Seneca Nation of Indians retailers lead the country in the sales of untaxed cigarettes.
You may also like
Healthcare Highlights in the New State Budget
Governor Hochul's focus on affordability seems to have skipped over the healthcare portions of the new state budget.
The deal finalized May 27 Read More
Four Problems with a Statewide Pied-à-Terre Tax
Soon after Governor Hochul floated the idea of a "pied-à-terre" tax in New York City, Albany Sen. Patricia Fahy proposed to expand the concept to the rest of the state.
As with H Read More
Albany Should Listen to Jamie Dimon
In his annual message to shareholders, JP Morgan Chase's chief executive, Jamie Dimon, offered a timely and pointed warning for New York policymakers.
It's worth , with emphasis add Read More
Mamdani Gets an Important Tax Fact Wrong
At a hearing in Albany last week, New York City Mayor Zohran Mamdani lobbied state lawmakers to help him balance the city's finances with a two-percentage-point hike in the city's income tax on people making over $1 million Read More
Parsing the Impact of Mamdani’s Tax Hike Plans
The front-running candidate for New York City mayor, Zohran Mamdani, has said he can finance his costly campaign promises – including free buses and universal child care – by taxing only a sliver of the city's residents Read More
Why New York’s Health Premiums Keep Going Up
New Yorkers continue to face some of the costliest health premiums in the U.S., and the insurance industry's recently finalized rate applications shed light on why that is.
In summa Read More
Two Dozen School Districts Are Returning to the Polls for Budget Revotes
Voters in 24 New York school districts return to the polls on Tuesday for school budget revotes. Last month, voters in 96 percent of school districts outside New York City conducting votes approved their school budgets for the upcoming year.
The 683 sc Read More
Even With Federal Cuts, New York’s Health Funding Would Remain High
New York's health-care industry stands to lose billions of dollars in federal funding under the major budget bill being debated in Washington – a rare and jarring turn of events for a sector accustomed to steadily increas Read More