Latest extender jacks up tobacco prices

ALBANY, N.Y. (WIVB) - New York State smokers will be sending millions more of their money up in smoke, now that lawmakers have passed the most expensive tobacco tax in America.

Sen. George Maziarz warned, "There will be a clash of cultures here in this state."

Sen. Maziarz is referring to a Native American backlash over a sales tax increase on cigarettes. The tax increase passed, despite the state's Republican senators all voting "no" to raising the sales tax. The plan also allows New York to collect tax on Indian reservations from non-tribal customers.

"You really wonder if this isn't just phony revenue. If they're putting this out there, knowing they're not going to collect it, just to get through the budget process," wondered Sen. Maziarz.

Sen. Michael Ranzenhofer said New Yorkers are already overburdened.

Sen. Ranzenhofer commented, "You're continuing to drive more and more people from this state."

The tax will be raised from $2.75 to $4.35, making a pack cost over $9. The tax on cigars pipe and chewing tobacco and other tobacco products will jump from 46 percent of the wholesale price, to 75 percent, all of this is expected to bring in around $440 million this year.

And while lawmakers continue to pass the entire budget, another extension was voted on, but the deadline came a bit too late for New York's Budget Division. Some of the 153,000 state workers due to be paid Wednesday now likely won't get paid until at least Thursday.

Lawmakers voted on just over a billion dollars in savings Monday. This was the 12th time that lawmakers voted on a budget extension. Governor David Paterson has given the legislature a deadline of next Monday.