In Albany, new New York Gov. David Paterson lost no time in pressing for a budget deal that, if passed, would increase the State’s cigarette excise tax by $1.25 per pack.  The increased tax would be added to the current $1.50 tax per pack in upstate New York and the $3 tax per pack in New York City.  New York Association of Convenience Stores (NYACS) President James Calvin told legislators that the tax would unleash a tax avoidance pandemic, saying a vote for the new cigarette tax “equates to a death warrant for mom-and-pop convenience stores.”

If the proposed tax increase goes into effect, the State would reap about $265 million in additional revenues, according to the Associated Press. The budget deal also covers the way snuff and other moist tobacco products are taxed by taxing them based on weight as opposed to a percentage of the wholesale price.  The State would raise a “few million dollars more” as a result of the proposed change, reports NACS.

“Please don’t sign it. Please don’t do this to these small business families who have never asked the State of New York for anything other than the chance to compete fairly for retail trade,” said Calvin referring to the budget bill. “Please don’t do this to these working families that toil seven days a week striving to serve their customers, pay their bills, provide employment, collect and remit taxes to the state, comply with a litany of state and local regulations, and earn a living.”