Local Merchants Worried About Tobacco Price Hike

Smoking has always been an expensive habit, but as of July 1, the price has become a bit steeper with a $1.60 increase in the cost of a pack of cigarettes.

State legislators recently approved a $1.60 increase in sales tax on cigarettes, which local businesses say will hurt them while benefiting shops in Connecticut and New Jersey.

New York State now has the highest cigarette tax in the country at $4.35. Before the increase, New York had the fifth highest tax rate in the country at $2.75, behind only Rhode Island, Washington State, Connecticut and Hawaii.

A pack of cigarettes in New York will cost on average about $9.20 or almost $11 in New York City, which has its own cigarette tax in addition to the local and federal tax. Other taxes on tobacco products such as chewing tobacco and cigars increased from 46 percent of the retail price to 75 percent.

Tony D'Onofrio of the Rye Smoke Shop said the imposed tax is certainly not going to help his business.

"The state needs revenue, but businesses like mine will suffer," D'Onofrio said.

In preparation for the increase D'Onofrio was mentioning the increased tax to customers over the past week.

"They all say they're going to quit," D'Onofrio said. "Some will, but the majority won't. The majority will travel to Connecticut."

According to Tobacco Free Kids, cigarette taxes in nearby Connecticut are $3.00, and in New Jersey $2.70 ranking those states 4th and 6th highest, respectively. Missouri, which hasn't increased its cigarette tax since 1999, is the lowest at 17 cents.

Ramon Varjrs of Lucky Corners in Port Chester echoed D'Onofrio's concerns.

"People don't want to pay more because it's too high," Varjrs said. "Most people will go to Connecticut or New Jersey now, where for the price of one pack they can get two or three."

Varjrs said he had already noticed his business decreasing but that he wasn't sure if that was due to the price or less people smoking.

D'Onofrio also said the tax was unfair when many people buy tobacco products from the Indian Reservations, which don't pay the sales tax even though they are required to.

Come September 1, the state will collect taxes on cigarettes sold on Indian reservations to non-reservation visitors. In late June, a US District Judge held three men in contempt whom she said ignored a court order to stop selling untaxed cigarettes to the general public on the Poospatuck Reservation in Long Island.

The Byram Smoke Shop just over the Connecticut border and less than 3 miles from the Rye Smoke Shop and Lucky Corners refused to comment for the story. The Tobacconist, an upscale shop in Central Greenwich slightly more than 5 miles from Rye Smoke Shop, said it isn't sure what will happen but would be glad if it benefited the store.

"I hope so," Michael Cafagno said when asked if he thought the Tobacconist would see more business. "We aware of it [the increase], but we haven't done much. We have to let the people decide what they want to do."

The increase was part of an emergency budget bill designed to keep the government functioning while giving the state time to pass a budget.