Raising cigarette prices is one of the most effective ways to prevent and reduce smoking, especially among youth. Research shows that every 10 percent increase in the real price of cigarettes reduces overall cigarette consumption by approximately three to five percent and the number of youth who smoke by six or seven percent.
New York City has the highest state-local tax on cigarettes in the country. Youth smoking in our city declined from 17.6% in 2001 to 8.5% in 2007. But it has remained level since then. More work needs to be done to bring down youth smoking rates and prevent kids from lighting up.
The recent proposal by Mayor Bloomberg and the City Council will increase prices on tobacco products in an effort to reduce youth smoking. A set of “Sensible Tobacco Enforcement and Pricing” (STEP) initiatives would work to stop trafficking of illegal untaxed cigarettes, restrict the use of the coupons and price discounts, and create a price floor for a pack of cigarettes.
An actual pack next to counterfeit cigarettes.
The Department of Finance and the Sheriff’s office have been vigilant in their efforts to stop counterfeiting and the illegal trafficking of untaxed cigarettes. A growing body of evidence supports the connection between cigarette trafficking and organized crime because it provides large profits with lower risks than other criminal activities such as drug dealing.
Other states are not as rigorous in their pricing and tax strategies as New York State. Near New York, Virginia is a low-taxed state. North and South Carolina don’t require a tax stamp on cigarettes. Stores that sell cigarettes on Native American Reservations do not charge sales tax because they are not subject to US federal or state taxes.
