Two cigarette companies owe New York State the hefty amount of $50 million. New York Attorney General Letitia James announced on Tuesday, September 13, 2022, that the companies have entered an agreement with the state to pay back taxes. The companies allegedly sold cigarettes in the state without paying the required state excise taxes.
Grand River Enterprises Six Nations, Ltd., which is based in Canada, and its wholesaler, Native Wholesale Supply Company, Inc., which is located in Western New York, violated state and federal laws. The companies shipped, sold and distributed millions of cartons of unstamped cigarettes from Canada to New York. The agreement also prevents the companies from selling unstamped cigarettes in the state in the future.
Attorney General James said,
Hardworking New Yorkers pay taxes and so should multi-million-dollar companies. Regulating and taxing cigarettes is a critical tool to protect public health from the deadly dangers of tobacco. Today’s agreement enforces New York’s laws and will stop the overflow of unstamped cigarettes into New York.
Bad Habits Cost More In New York State, There's A 'Sin Tax'
New York State definitely places high taxes on certain 'bad habit' items, like cigarettes.
Cigarettes and little cigars are taxed at a rate of $4.35 per pack and an additional $1.50 a pack in NYC.
Other tobacco products also have high taxes placed on them.
Snuff is taxed at $2 per container that is one ounce or less, and $2 per ounce for containers over an ounce.
Cigars have a tax rate of 75% of the wholesale price.
The tax rate on vapes is 20% of the retail price.