Increasing taxes on tobacco products has been shown to be one of the most effective means of reducing tobacco use, particularly among youth. However, taxes are not applied equally to different forms of tobacco which can lead to substitution of one tobacco product for another. Moreover, tax increases can be undermined if untaxed purchases or industry price manipulation are permitted. Therefore, it is important to ensure that taxes are collected on all products (including internet tobacco sales and sales from Native American reservations), price promotions are restricted and cigarette smuggling is curtailed.
New York State’s cigarette and tobacco taxes are among the highest in the nation. The state cigarette tax is $4.35 per pack (and New York City imposes an additional $1.50 cigarette tax). The tax on cigars and most other tobacco products is 75% of the wholesale price.
With the increase in tobacco taxes, tax evasion has become a serious issue in New York. However, both the state and federal governments have made significant efforts to address this issue. Additionally, many communities have the authority to restrict industry-driven price promotions to prevent tobacco companies from undermining the positive public health impact of higher taxes.
For more information about tobacco product pricing, see our publications or contact the center at firstname.lastname@example.org.
Cause and Effect: Tobacco Marketing Increases Youth Tobacco Use
Excerpts from the 2012 Surgeon General’s Report “Preventing Tobacco Use Among Youth and Young Adults.”
Tobacco Price Promotion: Policy Responses to Industry Price Manipulation
Technical Report describing the relationship between product price and tobacco use, industry methods of price manipulation, and policy options to maintain higher prices on tobacco products.
Tobacco Price Promotion: Local Regulation of Discount Coupons and Certain Value-Added Sales
Technical report and model policy to prohibit redemption of coupons and other price promotions at the point of sale.
Just the Facts: New York Cigarette Marketing Standards Act
A fact sheet breaking down the New York State Minimum Cigarette Price Law
Disparities Fact Sheet
Fact sheet explaining the disproportionate impact of tobacco marketing on youths, minorities, racial and ethnic minorities, and those of low income and education.
Cigarette Tax Evasion Technical Report
This report examines the major sources of tax evasion in New York State and analyzes related legal issues. It addresses untaxed sales by Native American retailers, online cigarette sales, and cigarette smuggling and counterfeiting.
Tobacco Product Pricing Policy in Vermont
Report describing the relationship between product price and tobacco use. This report includes policy examples and related considerations and best practice.