New York cigarette tax increases another $1 per pack, bringing the total to highest in nation

ALBANY — New York’s cigarette tax rises another $1 per pack on Friday to the nation’s highest tax of $5.35.

That will bring a typical cost of a pack of 20 cigarettes to more than $12 in most parts of the state and about $15 in New York City, which adds a city tax.

By comparison, the average state tax around the nation is $1.93 per pack, with taxes as low as 17 cents per pack in Missouri and 37 cents in Georgia. By comparison, California’s tax is $2.87, Massachusetts has a $3.51 tax and New Jersey has a tax of $2.70. The federal tax assessed in all states is $1.01 per pack.

Although included as a revenue item in the state budget adopted this year, New York’s tax increase is projected to lose money for the state because of reductions in smoking. Comptroller Thomas DiNapoli estimated the state would lose about $25 million annually in revenue.

Trade groups for convenience stores and the tobacco industry predict an explosion in sales of untaxed cigarettes from smugglers and through internet sales that would deeply cut into the state’s revenue. Before the latest increase, the Tax Foundation, a fiscally conservative think tank, had estimated the state lost $1.1 billion a year in cigarette taxes because of the illegal market.

“The state would actually lose tax revenue, tax-collecting convenience stores would lose business, and the goal of more smokers quitting would be defeated," said Jim Calvin, president of the New York Association of Convenience Stores.

But Hochul and legislative leaders said the tax increase isn’t about revenue.

“This is a public health matter,” Hochul said in adopting the measure. “It's been recommended by public health authorities … all communities need to have the best start in life and make sure that our young people don't get addicted to cigarettes.”

The national Campaign for Tobacco-Free Kids called the tax “an important victory for kids and health.”

“The evidence is clear that raising the price of cigarettes is one of the most effective ways to reduce smoking, especially among kids,” said Matthew L. Myers, president of the advocacy group. “The $1 cigarette tax increase will prevent kids from smoking, encourage smokers to quit, save lives and save money by reducing tobacco-related health care costs, which total over $12 billion per year in New York.”