The New York Association of Convenience Stores (NYACS) has reported that cigarette sales at convenience stores in New York have seen a steep decline since the $1.60 per pack cigarette tax increase hit on July 1, 2010.
New York State now holds the highest state cigarette tax rate in the nation at $4.35 per pack, and according to NYACS, field reports show convenience stores have seen an average drop of 25-35% in cigarette pack sales in July. The new higher excise tax rates of 75% on OTP, $2.00 per ounce on moist snuff and $4.35 per pack on little cigars all went into effect on Aug. 1, 2010 and are expected to add to the decrease in tobacco sales throughout the state.
On Sept. 1, New York is set to begin enforcing the collection of the state cigarette tax from sales on Native American tribal lands to non-Native Americans.