N.Y.'s cigarette tax climbs to nation's highest

N.Y.'s cigarette tax climbs to nation's highest

Associated Press - June 3, 2008 7:13 AM ET

ALBANY, N.Y. (AP) - Smokers in New York now pay the highest tax on cigarettes in the country. The latest increase of $1.25 means smokers will be paying a total of $2.75 a pack just in taxes.

In New York City, which has its own cigarette tax, the cost of a pack could soar past $10.

The state health commissioner thinks the increase will convince an estimated 140,000 New Yorkers to stop smoking.

State officials also say the increase should bring in $265 million a year in additional revenue. Cigarette taxes already generate more than a billion dollars for the state.

The head of the New York Association of Convenience Stores says the higher tax will just drive smokers toward places that don't charge the tax: Native American stores, the Internet and bootleggers.