Good Life Diaries

Despite the tireless efforts of the New York Tobacconists Association, New York State Legislators foolishly and irresponsilbly passed an emergency "extender bill" on June 21, 2010 that raises the OTP (Other Tobacco Tax) from its current 46% of wholesale to 75% of wholesale.  Just over a year ago, the same tax was raised from 37% at the time to the current 46%.  Although it was clearly outlined to the State Legislators that this tax is not only revenue negative but would be devastating to the countless small businesses throughout New York State, they decided to turn their back on New Yorkers and push the tax through anyway. It should be noted that taxes are collected in the state in which the consumer takes ownership of the goods.  TO OUR LOYAL CUSTOMERS outside of NY State, this type of ridiculous over-taxation can no doubt mislead other State Leaders into thinking this is actually a good idea, so please be sure you are following the budget discussions in your state. If y

Ignoring once again the crippling financial burdens facing New York’s small businesses, the newest proposal by Governor Paterson to increase the Other Tobacco Products (“OTP”) tax from its current 46% of wholesale to 75% is outrageous, irresponsible and revenue negative for the State. Just over a year ago, the State of New York implemented an OTP tax increase from 37% of wholesale to 46% of wholesale. This increase put New York State’s OTP tax significantly higher than the OTP tax of neighboring states. Comparing the first quarter of 2010 to 2009, Professional Tobacconists across the state of New York lost a devastating 20-30% in customer transactions. But don’t be fooled, these customers have not quit enjoying their premium cigars or pipe tobaccos, rather they simply buy their tobacco elsewhere, either in a neighboring state or online. Further increasing the OTP tax will only continue to drive customers away from New York, resulting in a loss of not only OTP tax but also sales tax