• New York retailers and wholesalers would lose about $82 million in gross profits.Another key point is that the reduction in cigarette revenues is the result of smokers purchasing their tobacco tax-free at Native American reservations or on the streets not because they stop smoking. Read the whole report.
• Gross profit losses would average about $11,000 per store.
• Over 1,200 New York retailer and wholesaler jobs could be displaced due to the tax hike (based on estimated gross profit losses).
Tuesday, February 14, 2006
Business Up in Smoke
The New York State Association of Convenience Stores (NYACS) has been one of the most diligent opponents of increasing the cigarette tax without first collecting those same taxes from Native American retailers. NYACS puts out an informative newsletter called Tax Fairness Talking Points and its latest issue tackles how a raised cigarette levy would further harm small businesses:
Posted by Neighborhood Retail Alliance at 9:06 AM