The Indians will love it.

Cigarette Tax Will Mean $10 Packs

MYFOXNY.COM - Ten dollars for a pack of cigarettes? It might soon become a reality in many stores in New York City.

The cigarette tax in New York would jump $1.60 a pack under a tentative deal struck between Governor David Paterson and state government leaders.

The proposal is part of an emergency budget bill which is due for a vote on Monday.

In the city, which levies steep taxes of its own on tobacco products, a pack of cigarettes would come with a tax of $5.85, making it the nation's first city to break $5.

The Paterson administration hopes the proposal would generate $440 million in revenue this year, which would be a help close the state budget gap which is estimated to be over $9 billion

By at least one estimate, half the cigarettes consumed in New York are purchased from Native Americans who don't collect and pay state taxes. A new proposal would attempt to limit the number of cigarettes purchased from tribes.

http://www.myfoxny.com/dpp/news/local_news/manhattan/cigarette-tax-will-mean-10-dollar-packs-20100619-ac