Nassau County Presiding Officer Judy Jacobs (D-Woodbury) recently asked New York State Attorney General Andrew Cuomo to undertake a thorough investigation into the illegal sale of untaxed cigarettes, which results in lost revenues for municipalities and hampers legitimate businesses in their efforts to be responsible. Jacobs' written request of the attorney general's office was prompted by Nassau County's pursuit of a possible cigarette tax.
"In addition to the health benefits that have been documented by a reduction in the number of smokers attributed to a cigarette tax increase, the revenues generated by the tax would be extremely helpful to Nassau County and other counties that are struggling to balance their budgets in light of burdensome state mandates," said Jacobs.
Jacobs is spearheading a regional movement that includes Nassau County and several other downstate counties, to seek state legislative support for a cigarette tax that could range between $1.50 and $2 a pack. New York City currently has a cigarette tax of $1.50 and has expressed an interest in increasing the tax to $2. Jacobs has held two regional forums on the issue, with Rockland, Putnam, Suffolk, Orange and Westchester county representatives attending.
However, some industry groups have expressed opposition to any increase in the cigarette tax citing an increasing loss of revenue due to illegal sales and purchase of cigarettes, either through Internet sales, neighboring Native American reservations and cigarette smuggling which they believe is inadvertently aided by United States Postal Service due to their inability to curtail illegal shipments.
"While I am as concerned as anyone that legitimate businesses are not unduly harmed by government practices that hinder their profits, I do believe that the burden of responsibility should not fall solely on local governments," Jacobs said. "That is why I have requested that the attorney general's office undertake a thorough investigation into the practices I have outlined that would appear to permit the ongoing abuse of the illegal sale of untaxed cigarettes. These practices result in lost revenues for municipalities and hamper legitimate businesses in their efforts to be responsible. Our hands cannot be tied from implementing whatever laws are necessary to ensure the financial stability of our counties."