New Fee Could Hit Tobacco Vendors Hard

[Trossi3389]

There are new fees on the way for those who sell tobacco products in New York State. Next month the cost of a license to sell tobacco will increase by as much as 900 percent for some small businesses.

"That's not the kind of climate small business is going to thrive in," said Lenny Stebbins, owner of the Dewey Avenue Smoke Shop.

Stebbins says his business is under attack, all because he sells tobacco and makes a profit.

"They're trying to raise revenue that isn't there," said Stebbins. "They're trying to raise money to pay for programs they've enacted that they can't pay for."

Stebbins used to pay $100 a year for a license to sell tobacco. Starting in September, he could pay as much as $5,000 a year depending on how much he makes.

"Not having those numbers in front of me I'm not sure where I'm going to be," said Stebbins.

NYS State Senator Joe Robach says this is just the tip of the iceberg.

"The New York City Democrats want to continue to spend, spend, spend, and tax, tax, tax," says Robach, a Republican. "This is large tax increases across the board."

Robach said this year’s budget was rammed through the legislature by a new leadership in state government. He says it includes $8 billion in taxes and fees to pay for an increase in spending, costs most taxpayers aren't aware of.

"And we have to yell loudly, collectively," said Robach. "Citizens, elected representatives from Upstate New York alike to make sure that these New York City leaders don't continue down this road in the next budget cycle."


Oddly enough, this new fee could help Stebbins. It's expected to force smaller convenience stores to stop selling tobacco.

"They'll just drop it from their inventory because they're not a profitable enough item to sustain a $5,000 a year license," Stebbins said.

For now, Stebbins will take a cut in profits to stay competitive.

"I probably won't have to pass it on to my customers," said Stebbins. "That’s if I fall into the $1,500 range."

According to the New York State Department of Budget website, the tobacco licensing fee increase will generate an additional $16.7 million in this budget cycle.

[Dr. Jack]

woah - I am personally going broke from smoking

[T100]

15 bucks a 25/pack up here.thankfully I quit 10 yrs ago

[barryg]

As usual, smokers and drinkers being overtaxed by douchebag politicians...Not only do smokers pay ridiculous prices, they have to hide in alleys to smoke...we will soon be paying more for meat, pork and sugar products...
Legalize gambling across the U.S. if you want to raise some serious coin...