New York State - Fee to sell tobacco may climb..

March 3, 2009 - New York Governor David Paterson has proposed to inflate the state's annual registration fee to sell tobacco at retail from the current $100 per store to $1,000 (annual gross sales of less than $1 million), $2,500 (annual gross sales of $1 million to $10 million) or $5,000 (annual gross sales of more than $10 million) depending on the store's gross sales of everything including motor fuel.

As the legislature deliberates this and other budget proposals, New York Association of Convenience Stores (NYACS)is rallying its members to contact their state legislators in protest.

NYACS president James Calvin: "These obscene increases would come at a time when our cigarette sales have dropped 65% or more over the past eight years, mainly due to the epidemic of cigarette tax evasion sanctioned by the State of New York," Calvin said, adding that "tax-free" Native American competitors do not even bother to register and thus pay no fee. "Essentially, the administration wants to charge us 900% to 4,900% more for the privilege of selling one-third the amount of cigarettes we could be selling if they were enforcing the Tax Law equitably," he concluded.

Reference: Using License Fees as a Weapon'
NYACS fights "obscene" hike in retail tobacco dealer fee
, Convenience Store/Petroleum (CSP) Daily News, 3/3/2009.