New York 2025-2026 Regular Session

New York Assembly Bill A00657

Introduced
1/8/25  
Refer
1/8/25  

Caption

Increases the state excise tax on cigarettes.

Summary

A00657 would increase New York’s state excise tax on cigarettes by amending Tax Law section 471. The bill raises the tax rate from $5.35 to $6.24 per pack of 20 cigarettes, with a corresponding increase for larger packs. It keeps the existing framework for taxing cigarettes possessed in the state for sale and preserves current exemptions and procedures for sales involving qualified Indian nations or tribes, the United States, and certain military sales outlets. The bill also leaves in place the state’s mechanisms for collecting cigarette taxes on reservation sales to non-members and non-Indians, including the Indian tax exemption coupon system and the prior approval system when a tribe does not elect to participate in the coupon system. The measure would take effect immediately if enacted.

Impact

If enacted, the bill would directly increase the cigarette excise tax rate under New York Tax Law section 471, affecting cigarette wholesalers, retailers, distributors, and ultimately consumers through higher retail prices. It would also increase state tax revenue from cigarette sales while maintaining the existing statutory structure for reservation sales, tax stamps, and exemptions for certain federally protected transactions.

Sentiment

Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the overall sentiment appears neutral-to-supportive in the sense that the bill is straightforward revenue and public health legislation. The sponsor’s framing suggests an intent to raise the cost of cigarettes, which is typically associated with discouraging smoking and generating additional state revenue, but no formal debate or recorded vote is available here to show broader legislative support or opposition.

Contention

The main potential points of contention are the higher cost to smokers and the tobacco industry versus the public health and revenue benefits of a tax increase. Another likely area of sensitivity is the continued treatment of cigarette sales on Indian reservations, including the coupon and prior approval systems, which can raise issues of tribal sovereignty, tax collection, and enforcement. No specific objections or supporters are documented in the provided committee or voting history.

Companion Bills

NY S01981

Same As Increases the state excise tax on cigarettes.

Previously Filed As

NY A00097

Increases the state excise tax on cigarettes.

NY S02065

Increases the state excise tax on cigarettes.

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