In 2002, Mayor Bloomberg proposed a whopping 1800% increase in the cigarette tax, from 8 cents a pack to $1.50.  This "bodega tax" disproportionately harmed bodegas, green grocers, newsstands and other small stores, reducing sales by as much as 60% and adding hundreds of millions to city and state coffers.  However, instead of reducing smoking - the ostensible reason behind the hike - many consumers instead turned to the internet or illegal, street sales.  At times, this newly created black market led to violence and even death.  Now in 2006, the Mayor and Governor Pataki have again proposed a cigarette tax hike without addressing the fact that many consumers are still purchasing tobacco from the street or Native American reservations (the source of most street sales).  Until the governor enforces State law and mandates that Indians retailers charge a cigarette levy, all a tax increase will accomplish is to further shift sales from already reeling mom and pop store owners. 

Click here for articles on Mayor Bloomberg's tax on cigarettes and how this confiscatory levy has hit New York City's bodegas the hardest.  The tax, while failing to limit the number of smokers, has led to a drastic increase in black market cigarette sales.

We have listed our press releases dealing with the issues surrounding the mayor's 1800% cigarette tax increase.  View and print these positions papers here.

The Neighborhood Retail Alliance has crafted a number of memoranda dealing with the all the issues surrounding Mayor Bloomberg's injurious tax increase.  View and print these positions papers here.