BILL NUMBER: S1981
SPONSOR: STAVISKY
 
TITLE OF BILL:
An act to amend the tax law, in relation to increasing the state excise
tax on cigarettes
 
PURPOSE OR GENERAL IDEA OF BILL:
This legislation will increase the state excise tax on cigarettes by
$1.89.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1, Amends subdivision 1 of section 471 of the tax law. Section
2. Establishes the effective date.
 
JUSTIFICATION:
New York State currently imposes a $4.35 tax on each pack of combustible
cigarettes. The last increase by New York State was in 2010 when the tax
was raised by $1.60 and since then, smoking rates in the state have
declined more than 20%. increasing the tax on cigarettes has proven to
be one of the most effective ways to reduce smoking rates, particularly
among young people who are among the most price sensitive consumers. At
the federal level, the cigarette tax was raised by $1.01 in 2009 and
researchers saw 220,000 fewer middle and high school students begin
smoking.
New York State has made tremendous progress in achieving record tow
smoking rates over the last decade, but still, more than two million
adults continue to smoke, contributing to the death of 29,000 adults
each year. Currently, more than 750,000 adults in the state are living
with a smoking' related illness.
In order to continue seeing a decline in the State's smoking rates and
smoking-related deaths, we must periodically increase the tax on ciga-
rettes. A decade has passed since the Last, increase, so this legis-
lation will raise the State tax on cigarettes by an additional $1.89,
accounting for inflation since 2010.
 
LEGISLATIVE HISTORY:
2023-24: S.2065/A97 - Referred to Budget and Revenue/ Ways and Means
2021-22: S.3544/A.683 - Referred to Budget and Revenue/Ways and Means
2019-20: S.8330/A.10418 - Referred to Budget and Revenue/Ways and Means
To be determined.
 
FISCAL IMPLICATIONS:
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S1981: 471 tax law, 471(1) tax law