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NYS tobacco tax going up AGAIN!

U

uptown_isy

The Man Uptown
Joined
Nov 27, 2007
Messages
3,002
Location
formerly of Kingston, NY....now in West Palm Beach
It looks like NY State wants to raise tobacco taxes again. The Legislature will be voting on another NY Tobacco tax increase, probably later today. They're proposing an increase from 37% to 46%, with no cap on cigars. The kicker is that they would like to implement a floor tax on everything that stores have in stock. Depending on whether or not they have a floor tax, and how much that floor tax will be, the results can be disastrous for smokeshops in NY. Right now, we do not have to pay the NY tax if cigars are mailed out of state. If they implement a floor tax, many NY smokeshops will be forced to close. While we would not want to close, we would have to sell most of our inventory so as to not have to pay too much in tax. I will keep everyone posted. We just might have a sale in the next few days.
 
Isy - I was looking around for info, but couldn't find anything definitive. Is this part of the budget that was just proposed? The info I see says there will be a cigar tax of between 9 and 50 cents a cigar (depending on where I read it), and somewhere else mentioned the tobacco tax increase itself.

So, are these two different issues actually the same, just being reported incorrectly? Or has there been a set " x cents" increase, with a percentage increase looming?
 
Now that is a *****. It will hurt the smaller places. All it means is that you will have to ramp up your online business. Isy if you need help that is my specialty.
 
tomthirtysix said:
Isy - I was looking around for info, but couldn't find anything definitive. Is this part of the budget that was just proposed? The info I see says there will be a cigar tax of between 9 and 50 cents a cigar (depending on where I read it), and somewhere else mentioned the tobacco tax increase itself.

So, are these two different issues actually the same, just being reported incorrectly? Or has there been a set " x cents" increase, with a percentage increase looming?
Click to expand...

This is a budget that was done in secret. Apparently, they want to up the tobacco tax AND implement a floor tax. IF they implement a floor tax, how will I be able to compete online, if everything that I have in stock will have tax added? How can I explain to my out of state customers that they have to pay a NY tax (floor tax)? As for what you're saying Tom, I think it was reported incorrectly. I read the proposal in the new budget that explains exactly this. Unfortunately, I cannot post it. The person who sent it to me asked me not to publicly post this info. Let's see what happens.
 
grateful1 said:
FLA is suppose to be putting one in place as well.
Click to expand...

More info please...

<edit>
Link on reactions of Fl cigar makers to current tax
Another Link on the proposed FL tax. How would $1/oz tax work on cigars?

"Tobacco ... has killed as many people as all of our wars combined," said Sen. Ted Deutch, the sponsor.
"While using tobacco is absolutely a choice, the consequences of that choice should not be foisted upon the citizens of the state who help pay for the Medicaid program".
 
This is pathetic and outrageous. This government is going to tax the small companies out of existence in this state. I don't know if it is possible, but you might think about a warehouse in Pennsylvania. I know that Atlantic Cigars moved their operation to PA a couple of years ago.
 
LouieD said:
This is pathetic and outrageous. This government is going to tax the small companies out of existence in this state. I don't know if it is possible, but you might think about a warehouse in Pennsylvania. I know that Atlantic Cigars moved their operation to PA a couple of years ago.
Click to expand...

If Isy expands their online business then I could see that as an option.
 
Would you be able to back the floor tax out of anything shipped out of state, then deduct it from your taxes?


Perhaps you should start a movement, like Mark out in Sacramento, and refuse to serve any member of the NY legislature.
 
It would be nice if somewhere there were adults in charge of running things. You know, people who tighten their belts and make actual decisions when things get rough instead of clubbing the people over the head demanding more money. If average citizens behaved as the lawmakers do in this country most of us would be in jail.
 
Another tax that is misapplied IMO. Sorry to hear this Isy! Good advice given though about taking it out of state and increasing online sales if it is possible for you.

Bill
 
Moving out of state would definitely be a great option. Right now, it's all premature. Let's wait and see what happens. I heard that they were trying to reach a compromise with regards to capping the tax. But that's besides the point. The floor tax would apply to everything I have in stock, regardless of whether or not I send the cigars out of state. THIS is what will kill NY smokeshops. Guess we'll know by the end of the day or maybe tomorrow. It all depends on if it's voted on later today.
 
uptown_isy said:
Moving out of state would definitely be a great option. Right now, it's all premature. Let's wait and see what happens. I heard that they were trying to reach a compromise with regards to capping the tax. But that's besides the point. The floor tax would apply to everything I have in stock, regardless of whether or not I send the cigars out of state. THIS is what will kill NY smokeshops. Guess we'll know by the end of the day or maybe tomorrow. It all depends on if it's voted on later today.
Click to expand...


Hey if you do move out of state and head to Pa check out The Milford area, there is lots of warehouse space and or store fronts to be had plus you will be down the street from me. Look at all the positives there.

On the tax, this is just more bull spit out by lawmakers which it seems lately the little guy just does not have a voice anymore. They want to raise all these taxes to pay for health care programs that are just going to be bankrupt before they even get started because of the over taxing and smoking bans that are hitting us all everyday.
 
UPDATE...

Just received an email from IPCPR that says that the tax rate proposal is to raise to 46% (from 37%). There was "not enough support in Albany for a 50-cent tax cap on large cigars." It also says that "at this time, there is nothing in the budget's language about a floor stocks tax, however, when the state previously increased the OTP excise tax from 20% to 37%, a floor stocks provision was included."

Let's see how all this plays out.
 
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