28 June 2010

NY Legislators pass Increase in OTP tax

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 you have not already done so, you should also consider joining the CRA.  The Cigar Rights of America, though still relatively new organization, has been a driving force to helping states form their own organizations, as well as spreading the word on a national level as to what's happening state to state. http://www.cigarrights.org/


Even today, a final budget is still not passed and Governor Paterson continues to threaten Legislators and New Yorkers with a Government shutdown if a final budget... actually, his budget... isn't passed.

On June 18, the New York Tobacconists Association held a press conference at our sister store, De La Concha.  Here is the coverage from that event. http://gothamgr.com/new-york-tobacconists-speak-out-against-increased-otp-tax/

Rest assured, we have not given up our battle against this egregious taxation.  We will continue to show the negative impact this tax has on State revenue, and will hold these legislators accountable for that loss as well as the loss of jobs this tax will cause state-wide as small business will be forced to close their doors.

REMINDER! IT IS NEVER TO LATE TO CONTACT New York's "Leaders".



Sheldon Silver, Speaker

Email:  Sheldon Silver 

Telephone: 212-312-1420

Postal Address: 

250 Broadway

Suite 2307

New York, NY 10007

John Sampson, Senator

Email: John Sampson 

Telephone: 718-649-7653

Postal Address: 

1222 East 96th Street

Brooklyn, NY 11236

Governor David Paterson

Email: Governor David Paterson 

Telephone: 518-474-8390

Postal Address: 

State Capitol

Albany, NY 12224

Pedro Espada, Senator

Email: Pedro Espada 

Telephone: 518-455-3395

Postal Address: 

Capitol Building Room 420

Albany, NY 12247

Carl Kruger, Senator

Email: Carl Kruger 

Telephone: 718-743-8610

Postal Address: 

2201 Avenue U

Brooklyn, NY 11229

Malcolm A. Smith, Senator

Email: Malcolm A. Smith 

Telephone: 718-528-4290

Postal Address: 

205-19 Linden Boulevard

St. Albans, NY 11412

Jeffrey D. Klein, Senator

Email: Jeffrey D. Klein 

Telephone: 718-822-2049

Postal Address: 

Capitol Building

Room 427

Albany, New York 12247

Eric Adams, Senator

Email: Eric Adams 

Telephone: 718-284-4700

Postal Address: 

572 Flatbush Avenue

Brooklyn, New York 11225