BILL NUMBER: S7569
SPONSOR: BRESLIN
 
TITLE OF BILL:
An act to amend part S of chapter 59 of the laws of 2023 amending the
tax law relating to increasing the rate of tax on cigarettes, in
relation to the tax increase of certain cigarettes on hand prior to
September 1, 2023
 
PURPOSE:
This legislation would allow the sale of cigarettes already having a tax
stamp affixed prior to the forthcoming cigarette tax increase date.
 
SUMMARY OF PROVISIONS:
Section 1Section 3 of part S pf chapter 59 of the laws of 2023 is
amended relating to the increasing rate of tax on cigarettes..
Section 2 provides for the effective date.
 
JUSTIFICATION:
Recently, the state increased the state's cigarette tax. Wholesale
distributors are those who pay the cigarette tax and act as the agent of
the State in affixing cigarette tax stamps. Wholesale distributors, who
are many times large in-state employers, are left with the burdensome
task of re-inventory, auditing, and applying the new tax stamp to the
product that wholesalers have already applied the tax. This bill would
allow the sale of existing floor stock having tax stamps already
affixed. Based on previous years' sales, estimates are floor stock
already having a tax stamp affixed would take around 30 days to be fully
sold upon the date of the new tax increase
Recently, several states have increased their cigarette tax but have
made accommodations for wholesale distributors existing floorstock,
including Illinois, Arizona, and Colorado. This legislation does not
adversely impact the state's recent law increasing the state's cigarette
tax.
 
FISCAL IMPACT ON THE STATE:
Revenue positive.
 
LEGISLATIVE HISTORY:
None
 
EFFECTIVE DATE:
This act shall take effect immediately.