How much untaxed revenue is state missing out on?

Monday, October 27, 2008 11:18 PM EDT

A lot has been made of the recent arrest of an Onondaga County woman for a misdemeanor tax evasion charge. This woman had apparently just left a Native American-owned business after purchasing five cartons of untaxed cigarettes and was stopped after a traffic infraction.
Many people were unaware that one could be charged with a crime after purchasing more than two cartons of untaxed cigarettes. Others were upset over the arrest itself, at the retailer who sold the discounted cigarettes and at state government, which has not resolved this tax issue.

We are experiencing a financial crisis in New York state. Those of you who work for state or local government or at organizations funded by the state know that austerity budgets have been put in place. Everyone is hurting. It's no wonder someone would drive 75 miles round trip to buy cheap cigarettes.

If we are to ever cut health care costs in New York state, we have to tackle the smoking problem by using proven methods. Over $8 billion a year is spent in New York state to treat smoking caused disease and Medicaid costs are $5.4 billion of that total. Cigarette tax revenue and tobacco company settlement payments will total approximately $1.7 billion in 2008, so don't even think that the income generated by tobacco can pay for what is going out.

How much revenue from untaxed cigarettes is the state missing out on? Estimates range from $400 million to $1 billion. Any amount collected would certainly put a dent in the budget shortfall. Those taxes need to be collected and the work of local community partners, cessation centers, school policy partners and Reality Check groups need to continue if we are to see change.

Anne McCarthy

Auburn

The Citizens' Say

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There are 2 comment(s)

anonymous wrote on Oct 28, 2008 1:58 PM:

" I think that they should start taxing self rightousness. Ms McCarthy and the Antismoking Nazis need to forward their paychecks to the NYS Department of taxation and Finance. "

nature lover wrote on Oct 28, 2008 9:18 AM:

" Taxless gas and cigs are for indians ONLY !!!! Not the rest of us. "

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