Skip to Main Content

New York’s Proposed Cigarette Tax Hike and Flavor Ban Will Fuel Illicit Markets and Decrease Revenue

January 24, 2023

New York Governor Kathy Hochul (D) has her sights trained on tobacco. Earlier this month, she proposed increasing the New York cigarette tax rate by $1.00 a pack and extending New York’s existing flavored vaping ban to all other flavored tobacco products. If enacted, these policies would fuel black markets and create a fiscal hole for the state to fill, all while hurting New York businesses and consumers.

New York already leads the nation in cigarette smuggling. More than half of the cigarettes consumed in the state, an estimated 53.5 percent, are purchased from illegal outlets or smuggled across state lines. The foregone revenue from the more than 250 million smuggled packs exceeds $1 billion annually. With Governor Hochul’s proposed changes, that figure could grow substantially.

To read the full report: