The underground tobacco market is spreading like a fast-growing cancer in the wake of tax hikes that make New York cigarettes the most expensive in the nation -- and it's costing the state tens of millions a month in lost tax revenue, a Post analysis has found.
Illegal cigarettes are pouring into neighborhood bodegas by the truckload from neighboring Indian reservations, lower-tax states in the South and even as far away as China, authorities say.
Government data show that New York state is being smoked out of as much as $20 million a month from all these illegal cigarette purchases -- an estimated 7.3 million packs a month sold off the state tax radar.
"It's an unfortunate side effect of the taxes, creating this black market," said Ron Turk, special agent in charge of the Bureau of Alcohol, Tobacco and Firearms' New York field office.
Sales of taxed cigarettes have plummeted 27 percent since July, when state lawmakers raised the excise tax to $4.35 a pack on top of the city's tax of $1.50, making the average price of Marlboros here $11.60, with some shops charging as much as $14.
About 30 million packs are being sold legally each month -- down from 41 million packs a month before July.
The plunge far exceeds tobacco-control experts' predictions that sales would fall 8 to 10 percent, indicating that smokers are finding other means to get their nicotine fix.
In fact, the New York Association of Convenience Store Owners estimates that as many as half of all cigarettes consumed in the state lack proper tax stamps.
And law enforcement is also worried that the easy cash will spark rivalries among criminal gangs, just as drugs have.
"We see lots of [rip-offs] and violence with drug trafficking, and you will see a rise of that in tobacco, too. As volume and money go up, the stakes get higher. And certainly, a concern of ours is violence will spill out of this," Turk said.
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7 comments:
It would be nice if the people who write the tax law would pay their own taxes.
who lives in Md and shops in De, By the way they should of built Sams, Lowes, Wall Mart, Home Depot in Delmar De. Marylands Greed cost Md alot. 6% is alot
the state is turning a blind eye intentionally due to the underground revenue stream associated with the business.nothing more than regulating a legal substance.everyone in the business is smoking.what a great way to get yours for free.
I told you people in all of my writings, Americans GREED is what killing this country. It doesn't matter what political party you claim yourself too, it's that 'ole White mans American GREED that's killing the average American hard working income.
It's less expensive to smoke pot.
6:43 PM
Don't you people ever get tired of spewing this crap?
This isn't the 1860's and it's really not a valid argument any longer.
The basic truth is you are lazy and always quick to shout from the nearest rooftop that it is 'whitey's fault.
Guess what? That whiny excuse is no longer valid.
It is the personal actions that some of you take that cause most of your problems.
We are sick of hearing it. It is simple not true for the most part.
But it is easier to blame others for your shortcomings and missed opportunities isn't?
You have to learn to ignore a lot of things, just like we have to, if you want to advance and have a more successful future.
Get off the poor me soapbox. Make some goals for yourself and WORK to make them happen.
Contrary to your popular belief, you are not held back by anyone but yourselves.
We have to work hard, take some personal responsibility and get rid of the 'entitlement' attitude.
You may be surprised to find others will even help you achieve your dreams if you are sincere and actually attempt to put forth an effort to move up in the world.
Being hateful, lazy, racist, and unwilling to put forth the necessary efforts will get you nowhere.
It's all in your very own hands what you will achieve or not achieve.
Personally, I couldn't care less if you're in a shelter, homeless, in jail, or in any other situation that you find yourself in if you never shown an effort to better yourself besides holding you hand out and THINK anyone owes you anything.
No one owes anyone anything. You are responsible for your own destiny in the actions and decisions you take.
Blaming others is just a vicious cycle that will get you nowhere fast.
Think about this and make some positive changes in your life. You are the only one who can change your life.
What did they expect? Raising taxes to confiscatory levels will only promote creative ways to avoid paying them.
Did their actual revenues go up or down as a result of the higher rates?
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