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History
- Referred to investigations and government operations
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 43–18
- Ordered to third reading cal.1188
- Reported and committed to rules
- Reported and committed to finance
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to the tax on certain tobacco products
In Assembly Committee · Ways And Means · Sponsor Michelle Schimel
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S3410
Title of bill
An act to amend the tax law, in relation to the tax on certain tobacco products
Purpose
This bill caps the state imposed tax on cigars at 75% of the wholesale price or $1.00 per cigar, whichever is less.
To remain competitive, and to provide the state with a stream of revenue it can depend upon, it is only logical to impose a reasonable tax cap on cigars, allowing the state to continue collecting revenue and establish ourselves as more competitive to surrounding states in the cigar market.
Summary of provisions
Amends sections 471-b and 471-c of the tax law to cap the tax on cigars at 75% of the wholesale price or $1.00 per cigar, whichever is less.
Existing law
Existing law provides for a 75% of wholesale price tax on cigars, with no maximum as to the dollar amount.
Statement of support
New York companies that manufacture, distribute and sell cigars are an important part of the State's economy, providing well-paying jobs, and paying significant amounts in taxes to the State and local governments.
In June of 2010, the State increased the excise tax rate on cigars by 63%. This increase was on top of a 2009 increase. Together, these new taxes have had a negative impact on businesses and workers in New York State.
Currently, some New York consumers are avoiding the high tax by purchasing the cigars over the Internet, or from non-taxed sources such as Native American smoke shops. Some consumers can also go to neighboring states with lower tax rates including Pennsylvania (which does not tax cigars) , Connecticut (which levies a 27.5% tax), New Jersey or Massachusetts (both which levy a 30% tax).
The current tax rate is 75% of the cigar's wholesale price. As such, the tax on a 25-cent cigar is equal to just under 19 cents, while the tax on a handmade cigar could be as high as $11.25 for just one cigar.
By capping the wholesale sale price on cigars at 75% or $1 dollar per cigar, whichever is less, we can save jobs in New York and prevent people from crossing borders, using the Internet and purchasing from non-taxed sources such as Native American smoke shops.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.