Andrew Cuomo wants to crack down on untaxed cigarette sellers (original) (raw)

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Gov. Andrew Cuomo wants the state to crack down on retailers who illegally sell out-of-state, untaxed cigarettes — proposing a measure that could effectively ban crooked businesses from selling tobacco.

Cuomo said bad-apple retailers would face possible closure under one of the proposals from his 2020 State of the State agenda, which will be released Friday.

“Cigarettes claim thousands of lives each year, and we will not turn a blind eye to retailers who deliberately flout the law just to make an extra buck at the expense of the health of New Yorkers,” Cuomo said.

New York currently has the second-highest tax rate on cigarettes in the nation at $4.35 per package of 20 cigarettes.

The Big Apple tacks on an additional 1.50perpack,bringingthetotalto1.50 per pack, bringing the total to 1.50perpack,bringingthetotalto5.85 a pack.

Unscrupulous retailers who try to evade the levies by selling cheap, untaxed cigarettes cut state revenues and undermine anti-smoking efforts, the governor said.

The legislation would slap tougher penalties on first-time violators, allowing the state to revoke a retailer’s license to collect sales tax and sell tobacco products at all locations tied to the registered owners — crippling their ability to do business.

He wants to boost the minimum fine for selling products to individuals under 21 from 300to300 to 300to1,000, with multiple offenses possibly leading to the loss of registration for one year, up from six months.

“The Department of Taxation and Finance would be empowered to shut down offending retailers altogether by revoking their authority to collect retail sales and other taxes from customers, a necessary prerequisite to operating any retail business in New York,” Cuomo said.

The Democrat is also proposing to allow state regulators to effectively shut down retailers who sell tobacco products to New Yorkers under 21 years old.

“Trafficking untaxed cigarettes and selling tobacco to underage people isn’t just unethical — it’s also illegal.”

In November, New York raised the legal age for purchasing tobacco and e-cigarette products to 21, a move also included in Congress’ new spending bill and applauded by President Trump, who called it “BIG” on Twitter.