Tobacco Documents Online

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+' -1l(, :•lir.iiniat€: o: y:7vo.zc7.'_r cui .::.il the sale of bootlegged' c_~iarefites in .:cr; Yorr; City a nd ~;i4?.e. -To stop the infiltration of: org .n::zed cri::r:^' into 'ai)n lec3i.t::::1ate ci•' ~1C:llte. tra(i::.. L'nCJ t(1 :)r'C.'dr'n{:' th6l.e e:v:1tL ;1. ta}:!(-,oti;Lr byo'rC .Ti'zedc of the t~ dc's c cribu ioi? .:hanncl::--charn,23.s tiirough wh ich hunr reds o:'' other non tobocco articles flo:•r. PRnVTIST.C)~+ ; OF BILL -7:I~-'_,~in'ation of tiYe 4 cent per pack excise tax on cigarettes so) d in New York Citly -T:'li:::in'a'tion of the' 3' to 4 cent per pack New York City tax-x on tar and nicotine. .}, -Exemption of ci garettes from both the S tate and Local salce taazCs -Increase the State excise tax on cigarettes from 15 to 17 cea:'.s: per' pack -Frot~.ection of NeLa York: City and all other Tocalities within the State against any loss in cilgarette'reve.nue that might result from the ellimination of local excise and' sales taxes on cigarettes --- -.. _ ..__. ~. .. ....-......,_ .:7G~.:..L.,. AL...~i:vl.ii.ytvi:Lii. Lu.L.cz1 CV7.,ia over the sale, distribution and taxation of cigarettes in Nei•:. York State «. A:r'ALY.S I S'. z , :~- . . . . -The' followingi is a breaT.eiown of' the curre_~t cigarette tar,: fees in New York City and New York State: .New York City P?ew York State 15~ state excise tax 15G' state excise tax' . 4'C city excise tax 24'state and'local sales tax 3'fi state andd city' sales tax 3-f,e_citv tar_b nico',:zr.,^_ tax _ 25 2GC' total cigar.cLte t_x^ 17G'total ciyarcL'te tax.

I , f C.11a. !:_ ;or 7 ... .: ni:_.~. .:ni:_. 17: ::C) r L :.. 1..t1=C)l iLi1cZ -f:. .: ;.n .."V as 55 C,_Ct:i .. ~ i - ._ty' ~., as iiy'ji ac- . '05' CLnts -orcJznizc~s cri.,s is boot]r, =;i;!~; one' of every t%ao t~ack; Goldd ini I7o•.; ' lt_;c Citv and one oi` every iou:r packs of cigarettes sold in Yo:i}. State* -The uc:d,e.iworld is rg ar,i. nci LFro~-i ts %,:ell in: excess of $5'5 million a year frorr its hootlcg,giing o,;e,:•ati'ons -New Yor)t City a; d New York S~.ate are lo-_Jinc; over $135 millllion a yew- in r.,-.:c:-r--l:._,.cind -As stated in tiie :;:ev,' Yorlc S!ta;te Invost:igatiotr CorLmiss:ion"s Ftcport o:1 cigarette booLlecjging at p. 68: "It is undisputed that the heart of'the entire (uootle Jr, in7) prohla.-it lies in the vri'de disparity between the price of a pac'•>age of cigarettes i'nn some Southern States, such as North C4rolina,, and ~ in New York City." -The 26 cel:Ls paid in cigarette taxes on a pack of cigarettes in New York City is equal to the enLi re cost of a pacl:;ago of cigarettes in North Carolina EFFECT 0:' BILL -The following is abreaY.doam of the'proposed cigarette tax fee in New York City and Ne-aYork State: New York City Nete' York State 1U state excise tax l7fi state excise tax OG city excise tax 0~ state and local sales tax ..O.~ state and city..s salestax. OG city tar & nicotine tax 1i74 total New York City tax 17G total unlform' Nev York State tax -Our statistics show that the estimated receipts from all the. New York City excise and sales taxes and the York Statee excise and sales taxes on cigarettes will approximate $395 million in fiscal 1972-1973 -A uniformistatewicde cigarette tax of 17 cents--based on, 1!970-1971 consumption levc.l'~~;--t;~ould Urg ind in' a total of $,37'7'.5' million, represcliiii:nc; a loss of $17.5 million. *sa:.cd on February 1972 t:a:c receipts

< C ci4 l;et ta':C {',~.tl Il 1_.'..lJ 67._~. -:C ~~.., C~i. C1'j ~, Yi~.~.L:io4, t'Yz !'._ Z:ri?~ .:Jo ,i:l., CRClI, YC:~at . G r:lr t;: , 1'lo~,.'e L~ .. 1 _ G LC ..-C r n !.? i.:l'. ~ . .,Z.!__, 0~f ~. :1t .~..i~1~... CJ~~ illt_ Y0.?:!- btl,~tu: recC:I" k)Y ' t.lT_. .-~~..'_Lr.. Lrat<L.'.. L'a7.- rc,...iala.~., l_.ro'.i? "r~Ct_I.17~LL1?::~_d" 3~2:les~. FIoL1lCi. ,.ti9r.r.]a t~ae Sta~ti''s~ tGiCl. C_~.1C_;;:1'C1:.-_C ta:; rc4'C°.IIL1.^J to~ ;,395 nlilliol1, in fis-cai 11?72-1.i73 ' CONCLU.71OLa -As a result of the cnactl:ren.t and inrn_ lementation of the. 6igarette control law: -Tvo i>'ei'r' York State corsumer t•.,c,:,ld '.xatie' to pay more for a pack of aigarettes -I:either Ne:v Yor'r.' State' nor New York City vould suffer any 1'.oss in cigarette tax, revenues'. -A serious bloti,r would be dealt to the cigarette bootlegging operations of organizsd crime -The l.egi_i inatie cicrarctte trad^ iaould' be protected against further inroads from the'cigarette bootleggers,, and -The threat of an undbr-wor7Jtakeouer of the trades distribution': channels would be elimuinated.. t