The New York Tobacconists Association and the International Premium Cigar & Pipe Retailers Association are reiterating their message to New York State that the proposed 90 percent tobacco tax will not generate the state the expected $40 million in revenue. And, it will cost New Yorkers jobs. The measure, labeled “another small business killer,” would nearly double the existing tax on cigars.
According to Ron Melendi, general manager of Manhattan tobacconist De La Concha and a fourth-generation tobacconist:
“That’s outrageous, ludicrous and potentially catastrophic. Already the 46 percent tax increase is resulting in lower tax revenues and several tobacco shops are closing while many others are failing. Raising that tax to 90 percent will drive the rest of us out of business, force our customers to buy out of state, over the Internet, or look for bootlegged products which are illegal. The bottom line is that the state will get even less revenues than before because of the lost business and lost jobs.”
Melendi, a full-time professional tobacconist for 20 years, is also president of the New York Tobacconists Association. The NYTA and IPCPR estimate the tax could cost the state 1,500 neighborhood jobs.
He adds:
“We’ve been writing letters, testifying, mobilizing our troops and meeting with state assembly and senate leadership. We also are appealing to smokers and non-smokers alike because what is happening makes no sense whatsoever. If they want to do what’s right, they will contact their elected state representatives to tell them to vote against this proposal.”
According to Chris McCalla, legislative director for the IPCPR:
“A 90 percent tax will kill the premium tobacco industry in New York State. Some of our members are already leaving the state or are on the brink of failure. Our customers will go elsewhere for their cigars and pipe tobacco. New Jersey’s tax rate is 30 percent and Pennsylvania is one of the few states that does not tax cigars or pipe tobacco. Buying cigars from out-of-state mail order and Internet dealers results in no taxes for anyone. And it would also encourage illegal sales of bootlegged tobacco products. The result would be a decline in jobs and tax receipts for the state, not an increase.”
A deeper analysis of this issue will be published on Cigar Reader later this week. Be sure to stop by and check it out.
Related posts:
- Tobacconists Take a Stand in New York
- New York Tobacconists Association Asks for Flavored Tobacco Ban Exemption
- New York Tobacconists Rally against Proposed Cigar Tax
- Tobacco Taxes: The Grand Misunderstanding
- New York Senate Cigar Champ Threatens Shutdown
Tags: cigar taxes, De La Concha, IPCPR, manhattan, New York, New York City, new york tobacconists association, nyta, politics, taxes, tobacco taxes
