Politics on the Hudson

State lawmakers are expected to approve new taxes on cigarettes and a plan to collect revenue from the sale of cigarettes purchased by non-tribal people on American-Indian reservations.

The price-per-pack would increase to $4.35, the highest in the country. Taxes on other tobacco products like cigars and chewing tobacco would increase from 46 percent of the retail price to 75 percent. They would take effect on July 1.

The tax increases come as the state seeks to close a $9.2 billion deficit. The plan is expected to boost state revenue by $440 million.

In addition to the new taxes, the state plans to start enforcing the tax on cigarette purchases by non-Indians on reservations, a long-sought source of revenue for the state and an idea opposed by tribal leaders.

The tax hike and collection plan was inserted in Gov. David Paterson’s weekly budget-extender bill, which must be approved or the state faces a government shutdown. Republicans have vowed to vote against the rest of Paterson’s budget extenders, which must be approved while the state budget still remains under negotiation.

Because of the tenuous majority Democrats hold in the Senate, all 32 Democratic lawmakers must approve the bill.

Anti-tobacco lobbyists cheered the proposal. The campaign for Tobacco-Free Kids issued a statement supporting the increase, but also made it an opportunity to pitch for increased spending on anti-smoking programs.

“It is great news for New York’s health that state leaders are planning to increase the state cigarette tax by $1.60 per pack, while also increasing the tax on other tobacco products and ensuring that taxes are properly paid on cigarettes sold by Native American tribes to non-tribal members. Increasing the tobacco tax is one of the most effective ways to reduce smoking and other tobacco use, especially among children. The planned tobacco tax increase is a tremendous victory for public health that will prevent kids from smoking, motivate smokers to quit, and save lives and health care dollars.”

However, it is also critical that New York adequately fund programs to help smokers quit and prevent kids from starting. It would be unconscionable for New York to cut back on these already underfunded programs at the very same time that smokers will be motivated to quit and seek help in doing so. New York must do everything it can to help smokers quit successfully and prevent kids from starting to smoke.”

The tax hike is also opposed by tobacco-lobby groups, who said this morning that the plan would lead to an undue burden on businesses and lead to an increase in illegal activity.

In addition to the budget extender, the Senate is expected to vote on budget bills for transportation, public safety and economic development. The Assembly approved those measures last week.

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