ALBANY - Holy smokes!
The Legislature on Monday night narrowly approved boosting the state's tax on cigarettes by an additional $1.60 - to a national-high $4.35 a pack. Factoring in city and federal levies, a single pack is taxed to the tune of $6.85, which translates to a counter price of $12 - $13 for New York City smokers.
The tax hike came as part of an emergency spending plan to keep New York government running for another week.
Pols now have seven days to cut a deal on a permanent budget, or risk Gov. Paterson putting a year's worth of spending - and painful education cuts - into an emergency must-pass plan.
The new tobacco levy will also drive up the tax charged on cigars and chewing tobacco to 75% of its wholesale price - a 29% jump.
"We are going to collect revenue and ensure that young people don't have access to cheap smokes," said Senate Deputy Majority Leader Jeff Klein (D-Bronx).
The new tobacco taxes will raise an estimated $290 million to help plug the state's $9.2 billion deficit, according to Paterson's budget office.
The emergency bills also include $150 million from the collection of taxes on cigarettes sold on Indian reservations, setting up a likely court battle with the Indian tribes.
Republicans slammed Democrats for being tax-happy.
"This is just a prelude of what you are going to see in the big ugly," said Deputy Minority Leader Thomas Libous (R-Binghamton.) "You are going to see spending and taxes, everything that you shouldn't do in this economy."
Health advocates praised the higher tax, which is well ahead of the $3.46 charged by No. 2 Rhode Island, saying it will make it too costly for many people to smoke.
"They are going to see well over 100,000 adults who will quit smoking because of this," said the American Heart Association's Julie Hart.
By including the new taxes in his emergency bills, Paterson effectively dared the Legislature to approve them - or shut down the government.
Paterson gave lawmakers until Monday to reach a final spending plan - 83 days late - before he puts the rest of his proposed cuts in emergency legislation - immediately raising the prospect of an unprecedented government shutdown.
"We shall wait to see what next week brings," said state Sen. Ruben Diaz (D-Bronx).
Lawmakers reported progress on a permanent spending plan, saying they've agreed to about 70% of what Paterson wants - but they haven't reached a consensus on controversial education cuts.
"I think we can have a deal in the next week," Klein said.
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