NY Proposed Budget - calls for 17 cent increase in cigar tax..

December 18, 2008 - Facing a projected $12.5 billion budget shortfall, New York Gov. David Paterson offered a $121.1 billion dollar spending plan Tuesday, December 16, 2008 that proposes many new taxes, includes raising the state cigar tax.

If the 2009-2010 proposed budget were to be approved, New York cigar smokers would be forced to pay 50 cents per cigar - an increase of about 17 cents. The current tax is about 34 cents. This tax increase is predicted to create $10 million in new revenue for the state.

Paterson’s budget also proposes, among other things, a tax rate increase on soda, movie and sporting event tickets, beer and wine, as well as downloaded music. The plan would also cut roughly $9 billion in spending, with projected spending cuts in health care, as well as an actual cut in education.

The proposal, which needs legislative approval, did not include broad-based income tax increases, but relied on smaller ones to raise $4.1 billion from cash-strapped New Yorkers.

Reference: New York Governor Proposes Cigar Tax Hikeby Andrew Nagy, cigaraficionado.com, 12/18/2008; Gov. David Patterson unveils dire New York State budget that includes new taxes. layoffs and cuts by KENNETH LOVETT and GLENN BLAIN, DAILY NEWS ALBANY BUREAU - New York Daily News, 12/17/2008.